Your Guide for Smarter Property Investment
Considering property investment a way to generate rental income or capital gains is one of the most promising concepts offering decent appreciation in future and several people are relying on banks, mortgage money lenders, etc., just to finance their investments. Getting loans are the most popular types of property investment financing. But have you ever thought the safest way to opt for t financing?
Let's have a brief overview of the tips that should be considered when you plan to get a home loan:
Conduct Comprehensive Research
Home finances are marketed quite aggressively these days by major financial companies, attracting investors offering various schemes and interest rates. Take wise decision before actually taking a loan. In depth understanding of the terms of the loan agreement, fine charges etc. is of utmost importance. Ask the lender to explain even the minutest details.
Consider your EMI Capacity
Calculate the expected EMI which you can afford to pay every month without defaulting. You are well aware of your income resources. Be real and honest and make sure you can make payment of all your EMI's on time, as penalties for non-payment of EMI can come very heavily on you.
Interest Rate Negotiation
You can negotiate your rate of interest with the bank. Often lenders accommodate some basic facts. Financial institutions often change their competitive rates of loans if that are disbursed rapidly. So seek financial help after finalizing your deal and when you require loan disbursement on urgent basis.
Other Additional Charges
Along with home loan there are several additional charges that can be quite a big amount. Like processing fees, admin and service charges etc. You must know what amount you practically take home. Once the EMI's start deducting, there could be charges for post-dated cheques swapping, alteration in monthly installment or tenure, all these would come to your account as bill.
Options of Pre-payment
You may often wish to and capable enough in future to prepay your loan. Just ensure is there any restriction on the number of pre-payments! Some company may place a cap on pre-payment in some early years. Some may allow you to pre-pay only some part of loan each year. Just understand is there any penalty levied on pre-payment?
Reading the loan agreement
Don't forget to go through the final loan agreement before actually nodding for it. Never acknowledge any blank loan paper, even if the bank representative asks you to sign it. Read the documents and data filled in your loan paper properly to ensure the condition are the same that has been discussed between you and your lender.
Let's have a brief overview of the tips that should be considered when you plan to get a home loan:
Conduct Comprehensive Research
Home finances are marketed quite aggressively these days by major financial companies, attracting investors offering various schemes and interest rates. Take wise decision before actually taking a loan. In depth understanding of the terms of the loan agreement, fine charges etc. is of utmost importance. Ask the lender to explain even the minutest details.
Consider your EMI Capacity
Calculate the expected EMI which you can afford to pay every month without defaulting. You are well aware of your income resources. Be real and honest and make sure you can make payment of all your EMI's on time, as penalties for non-payment of EMI can come very heavily on you.
Interest Rate Negotiation
You can negotiate your rate of interest with the bank. Often lenders accommodate some basic facts. Financial institutions often change their competitive rates of loans if that are disbursed rapidly. So seek financial help after finalizing your deal and when you require loan disbursement on urgent basis.
Other Additional Charges
Along with home loan there are several additional charges that can be quite a big amount. Like processing fees, admin and service charges etc. You must know what amount you practically take home. Once the EMI's start deducting, there could be charges for post-dated cheques swapping, alteration in monthly installment or tenure, all these would come to your account as bill.
Options of Pre-payment
You may often wish to and capable enough in future to prepay your loan. Just ensure is there any restriction on the number of pre-payments! Some company may place a cap on pre-payment in some early years. Some may allow you to pre-pay only some part of loan each year. Just understand is there any penalty levied on pre-payment?
Reading the loan agreement
Don't forget to go through the final loan agreement before actually nodding for it. Never acknowledge any blank loan paper, even if the bank representative asks you to sign it. Read the documents and data filled in your loan paper properly to ensure the condition are the same that has been discussed between you and your lender.
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