When you are in the pursuit of buying your dream home, you want to compare home loans and seek out the best home loans in India. But a key to finding a good home loan is not just finding the lender who is offering you the best home loan interest rate but is also the one that is best suited to you. Choosing the right lender is also an important part of the process as you are getting into a long term commitment with the lender as you are expected to service a home loan for a reasonably long number of years. Here are some of the key pointers you must keep in mind while seeking out the right lender:
What kind of product are you seeking?
The first thing you need to do while deciding the kind of lender that is best suited to you, is checking out the gamut of products that it offers and check out whether the kind of product you are looking for is available. Research on the website of the lender and find out the kind of products that are on offer and the terms and conditions on the same. If you are not satisfied with the information on the websites, feel free to walk into the banks or make a call to get your queries answered on things such as prepayments, processing fee and other fees that may not be mentioned upfront. If the bank is willing to answer all your questions you are probably on the right track.
Decide the kind of lender you want
As you are probably aware, you are spoilt for choice when you are seeking out the best home loans in India. There are many lenders out there who are willing to dole out long term home loans especially if you come across a creditworthy individual with a CIBIL score of 750 and above. You must decide what kind of lender you are comfortable with. Would you rather go to large public sector lender or a private sector lender where things may appear be a little more personalized. Your comfort level and existing relationships with the banks you have transacted with in the past will play a large role in making this decision. However, do not get carried away by fancy titles that loan representatives sport for ultimately they are indeed salespeople and their job is to get you on board as a customer.
Go old school
If you are unable to arrive at a decision yourself, take the help of family and friends. Check with those who have recently opted for home loans and their experiences with their lenders right from paperwork to ease of doing business. Talking to those you think whose word of mouth is trustworthy may lead to the right lender. However do bear in mind that you situation may not be similar to his, so don’t stop at word of mouth recommendations.
Check the reputation of the lender
The reputation of the lender does matter a lot when it comes to making the right choice for the best home loans in India. As we mentioned earlier, it is a long term relationship that you are getting into when you are opting for a Best Home Loan, and therefore you need to be sure that its values are the ones that you are looking for in a lender. It is easy to scout online for the kind of experiences that other customers have had with the bank in the past to assess what kind of reputation the lender has. If you get references of past clients, it’s a good idea to connect with them to know their experiences first hand.
Be prepared yourself
You can only be in a position to choose from amongst the many lenders if you are prepared yourself. Make sure you have made efforts to improve your CIBIL score from quite some time ahead of taking a home loan and have a CIBIL score that is close to 850, that is considered a perfect score. Also make sure that all the documents that a bank requires to process the application for your home loan is kept ready. Armed with the perfect CIBIL score and by ensuring that all the documents in order you can be reasonably sure that your home loan application will go through smoothly.
Thus as you can see, choosing the right home loan also entails the choice of the right lender. By putting in the effort it requires to make the right choice of a lender, servicing your home loan will be a breeze over the long term.
[Source: https://www.creditsudhaar.com/blog/2016/08/19/how-to-choose-the-lender-when-looking-for-a-home-loan/]
