When it comes to home loans, there are various lenders in the market. Almost all banks and financial institutions offer attractive home loans for your housing-related needs. Amidst so many loan offers, which offer, do you think, is the best?
Choosing the best lender for your home loan requires some research. When you research for the best lender, the first thing to consider is that the interest rate should be the lowest. You should compare the loan interest rates of different lenders. The lender with the lowest interest rate would be the best lender for your home loan. Comparison has become easier due to the presence of online loan aggregators on whose platform you can compare the home loan rates of different lenders at once.
However, comparing the home loan interest rate is not the only factor in deciding the best lender. There are other factors too which you should consider. These factors include the following –
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Approval of the property being financed
Banks and non-banking financial companies have a list of approved properties for which they allow loans. After you have selected the property to buy, you should check which lender is offering you a loan for that property. It might be possible that the lender offering the lowest interest rate might not approve the property that you have selected. So, search for lenders who are willing to give you a loan against the property that you want to buy and then compare the interest rates.
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Sufficiency of the loan amount
Every lender determines the maximum amount of loan, which would be sanctioned to you based on your eligibility parameters. The process of determination of the loan amount varies between lenders. So, compare lenders on the maximum amount of loan that they are willing to sanction and then choose a lender as per your loan requirements.
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Lower processing fees
A processing fee is also involved when you apply for a home loan. This fee is expressed as a percentage of the loan amount offered and should be checked. Comparing only the interest rates is not wise as you should compare the loan processing fee too and choose a lender charging the lowest fee.
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Other fees and charges
There are some additional charges also which are associated with a home loan like prepayment fee, foreclosure fee, late payment fee, etc. Look for these charges to find the lender with the lowest charges structure. The higher the charges levied, higher would be your out-of-pocket expenses so you should ensure that the other charges charged by the lender are not very high.
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Meeting the eligibility parameters
Every lender has a set of eligibility parameters which should be fulfilled by the borrower to get the loan sanctioned. Check the eligibility parameters of various lenders to find out which lender’s eligibility parameters do you fulfill completely. Only when the parameters are fulfilled can you get the loan.
So, these points should be kept in mind when choosing the best lender for your home loan. The lender should not only charge the lowest interest rate but also qualify on the above-mentioned factors so that your home loan proves to be the best deal that you can get.
