Some Useful Tips
Now that you have learned much about home loans, let us share some tips, which may come handy:
Tips to get your loan approved faster
- Having a co-applicant significantly increases the chances of getting the loan application approved faster. Having a co-applicant helps the bank understand that you are eligible to pay the loan back in time.
- One of the main issues for the delay and even rejection of home loans is inaccurately filled forms and insufficient documents. Take your time to fill up the form carefully, with minimal mistakes. Make a checklist of the documents to be submitted to ensure you don’t forget anything.
- While processing the application, the bank may contact you from time to time for additional documents or information. Respond promptly so that the application can be processed faster. Don’t let the processing be on hold due to a delay from your side.
Tips to reduce home loan EMIs
- Pay a higher down payment amount, if you can, to lower the home loan principal. This will bring down the EMI.
- Choosing a longer tenure will reduce the home loan EMI.
- In case you have a good credit rating, or you are a long-standing customer of the bank, negotiate with the bank to reduce the interest rate. Even a 0.10% decrease will matter in the long run.
- Consider doing a home loan balance transfer to another lender who is offering a lower interest rate. This can reduce your EMI. However, while evaluating a home loan balance transfer, evaluate other factors we mentioned while discussing home loan balance transfer.
Tips to reduce home loan tenure
- Prepayment is a good way to reduce tenure. If you get some lumpsum amount during the tenure of the loan, such as an annual bonus from your employer, consider making a prepayment.