Negotiate for cheaper home loan

Are you planning to take home loan for buying your dream house?

In each corner of the street banks are offering home loans but one should keep eyes open before making final decision.

Here are some simple steps to help you in finding cheaper home loan.

When you apply for the loan the bank check your income statement because the loan is sanctioned according to your repayment capability. There is another option in case your income alone cannot help in getting loan from the bank. You can put in more of your own money or adding a co-applicant to the loan i.e. you can apply for a loan jointly with your spouse or any close relative who is earning good income and can finance you.

Many banks offer an attractive interest rate but fleece you by charging high fees so you must ask for lowest possible initial fees and charges. But the final amount will depend on your income.

A bank imposes various charges like processing fees, pre-closure fees, etc. The processing fee is usually a percentage of the loan amount. So before finalizing the bank for loan, do the survey so that you can compare the charges being offered by your selected bank. Negotiate with the bank to either lower the percentage or even ask them to fix an amount about post-disbursement fees, and the terms and conditions.

Negotiate for loan amount according to your salary and repaying capacity. Usually the bank gives 80% of the amount of the value of the property. It is you have to see that your budget does not get curtailed with the remaining amount which you have to shell out from your pocket.

While selecting the bank for loan do survey about bank’s history and infrastructure. Most of the banks are offering post-disbursement service an essentially customer service which includes answering your queries on various aspects relating to your loan. The bank calls you. You don't need to chase them.

Follow these simple steps before you sign on the dotted line with your home loan provider.