One needs money at every stage of life. Sometimes it so happens that one holds a keen desire to purchase his favorite stuff but he is incapable to purchase due to shortage of money. Here lies a question that a person who does not have a good amount of money at particular time has no right to see dreams? Is he not authorized to fulfill his desires on time? Should he stop dreaming? No, because there is solution for these queries. Loans are available for these purposes only.
MoneyMindz advices that loans are provided to people for such critical circumstances which may occur at any time. In anyone’s life a situation may come when all of sudden you require cash. A moment when you do not want to borrow cash from your relatives. There may occur any kind of emergency when you need huge amount of money. There are various types of loans like home loans, personal loans, student loan, business loan etc. You can take any type of loan you need. For each and every kind of need, loans are available. If you want to build your dream home, you can avail yourself a home loan after taking the required knowledge.
But before you begin applying for a home loan, go through these important suggestions that could help ease the application process and simplify loan repayment:
1. Research on Loan Options
With easy accessibility of information on the internet, make an effort to do extensive research on the options available in the market before applying for a home loan. Your research should also include these three crucial factors that formulate a loan, namely, down payment, EMIs, and repayment tenure. Researching on these three factors prior to your home loan application enables you to choose a suitable home loan from a better lender at attractive interest rates. Home loan amounts are also usually larger than other loans, so make sure you explore all the details and uncover every nitty-gritty that comes along before, during, and after the home loan application.
2. Aim at Affordability
While there are plenty of options in home loans for you to choose from, affordability is a large contributing factor that you need to consider before applying. You should be able to not only afford the fixed monthly EMIs, but should also be able to adjust them comfortably within your cost of living. Consider overhead expenses beyond the EMI you choose to pay each month and maintain a steady income outflow to meet any unforeseen emergency. So, while you can always opt for purchasing a house that you like, in a location you prefer, being able to afford the home loan is equally important.
3. Spend Cautiously
A factor that immediately follows the affordability clause is that of monthly expenditure. Once you have a home loan to repay, it is preferable and advisable to follow a strict budget to meet your equated monthly instalments. You have to be regular in paying the EMIs to maintain credibility and to avoid an overdue or an increased interest rate. Since spiralling down the non-repayment of a home loan is common, avoid it by channelling your resources towards regular and timely repayment of the loan to gain full ownership of your home. This means spending with caution and postponing any non-immediate purchases. Such a controlled outflow of income would enable you to pay off the debts as soon as possible.
4. Choose Suitable EMIs
The equated monthly instalment amount depends on you. Banks offer varied EMI options to cater to and suit different needs of the borrowers. EMIs also depend heavily on the down payment you submit at the time of making a house purchase. The bigger the sum of down payment, the lesser the stress of the outstanding amount being converted into EMIs. It is also best to ensure that your chosen EMI amount does not exceed 45% of your total income.
5. Repayment Tenure
The time you take in paying off the sanctioned loan is considered your repayment tenure. The repayment tenure and your EMIs go hand-in-hand. While opting for a longer tenure might result in smaller EMI amounts, it adversely increases the interest rate to be levied, resulting in you having to pay double or triple the loan amount due to high interest. If you have a stable and recurrently increasing income, and plan a strict budget, it is advisable to choose a short repayment tenure with higher EMIs. Interest rates for such tenures are considerably lower to encourage faster repayment. Banks also offer attractive interest rates for those who decide upon a shorter repayment cycle.
Our Financial Adviser, Kuber Mindz is always ready to provide you financial assistance helping you attain financial literacy in the most convenient way. Purchasing the right home loan plan gives you the opportunity of buiding your dream home without any hindrance. It is always advisable to purchase any loan after taking the required information from the professionals and move forward with clarity.
For more information visit www.moneymindz.com or give a missed call to 022-62116588.