During the festive season every year, many lenders and builders compete for consumers by offering freebies and other enticements, such as no initial down payment, discounted rates, immediate ownership of a residential property, and free gold coins when a loan is taken out, and so on.
But before you give in without question to such offers, make sure you understand the terms and circumstances and determine whether or not the offers are appropriate in light of your financial needs. You won’t be able to take full use of the unique incentives that are intended for a certain sector of borrowers if you just take advantage of the offers because they are there, so it wouldn’t make much sense for you to do so.
Also factor in these aspects when taking LIC Home Loan during the festive offer season.
Take advantage of lender’s deals if you are financially ready
The holiday season is regarded as a fortunate time for most families to make investments and obtain a home loan in order to purchase the house of their dreams. In response to this, a number of financial institutions, particularly banks, have developed alluring offers, which may include preferential interest rates or the elimination of processing fees. Because home loans are typically a massive financial responsibility and involve a long term financial commitment, prospective home buyers are strongly encouraged to take advantage of such offers in order to minimise the overall cost of an ICICI Home Loan before the holiday season comes to an end.
Make sure that you go with the correct lender
In order to encourage customers to continue doing business with the lender over a longer length of time, financial institutions frequently devise unique home loan programmes that call for longer minimum loan terms, typically ranging from 10 to 15 years. However, because longer repayment tenures imply higher interest payouts, borrowers need to make certain that they compare lenders not only on the basis of Home Loan Interest Rate and processing fee but also on the basis of the prepayment/foreclosure charges levied. This is because a higher prepayment fee would defeat the purpose of prepaying the LIC Home Loan, which is to save money on the total interest cost.
Borrowers might consider going to online financial marketplaces because it is much easier to evaluate the terms offered by a variety of potential lenders and pick the one that is most appropriate for their ICICI Home Loan there.
Make sure that your selection for a LIC Home Loan is not influenced solely by offers
A great number of prospective home buyers, many of whom are not yet prepared or even eligible to take out a home loan, allow themselves to be swayed by seasonal offers and wind up applying for the same. People in this situation need to keep in mind that even while the major purpose of these holiday offers is to lure borrowers in the form of a variety of advantages, they still need to ensure that they have the financial resources necessary to make the down payment and obtain the home loan. Homebuyers who want to make sure their loan application doesn’t get turned down can check their credit scores on online financial marketplaces and utilise online ICICI Home Loan eligibility calculators to determine whether or not they qualify for a mortgage.
Must do things before submitting a home loan application
Save up a sufficient amount of money for the initial downpayment
Because of the criteria set forth by the RBI, lenders are only permitted to finance a maximum of 75% – 90% of the value of the property. This indicates that the borrowers are required to invest at least 10% – 25% of the cost of the property. Through the use of a corpus, at least 10–25 percent of this margin must be accumulated. Make sure you have enough money saved up to cover the down payment before applying for a mortgage. But instead of merely making the bare minimum required down payment, borrowers need to make it a goal to contribute a larger proportion from their own personal funds.
The rationale behind this is that the greater the amount that you put down as a down payment, the smaller the amount of money that you will have to borrow and eventually pay back, along with any interest that was accrued on the LIC Home Loan. Additionally, a bigger contribution by the borrower means a lower LTV ratio requirement, which in turn improves the odds of loan acceptance by home loan lenders.
Examine both your credit report and your credit score
When you apply for ICICI Home Loan, financial institutions like banks and HFCs will look at your credit score as one of the most important factors in determining whether or not they will approve your loan. Lenders will typically look at both your credit score and report before deciding whether or not to extend your credit. A high credit score indicates that you have been responsible for the management of your financial obligations in the past. Generally speaking, potential borrowers who have good credit scores have a greater chance of having their ICICI Home Loan application approved, as well as having access to more favourable terms for their loans.
Therefore, it is imperative that you obtain a copy of your credit report from each bureau on a regular basis, and if you find any problems or inaccuracies, you must immediately report them to the bureaus so that they can be corrected. Your credit score can be improved by taking the necessary steps in a timely manner, which you will have the opportunity to do if you check it regularly.
In addition, checking your credit score and report before applying helps the borrower get an accurate idea regarding his credibility and chances of ICICI Home Loan approval. This is assuming, of course, that the borrower does not fail to get approval for the LIC Home Loan for other reasons, such as failing to meet the minimum income criteria, reaching a certain age, or providing the required documentation.