Your home is one of the big-ticket purchases, and it’s one of the greatest investments you could make in your life. Due to the rising real estate prices, you would apply for a home loan with any of the lenders across India. But mere applying is not enough, because there is more towards it. A few things which even lenders won’t be able to tell you. It’s all about analyzing things on your own. So, here are a few things that will prevent you from falling into the trap of huge debt, and avail attractive home loan interest rates:

Choose your property and the lender

It’s a common practice in India to first ascertain the loan amount. But technically speaking, if you first choose your lender and if they are not ready to offer the loan amount for the property then deciding it won’t make a sense. There are a lot of aggregate sites that will tell your eligibility, home loan interest rates, etc. You can take an overall gist about particular lender willing to finance up to a certain amount. You should then finalize your property, ensure it has thorough paperwork, and then approaches the lenders who have finances houses in the same locality or project.

Splurge your savings

Some people feel having a stable job is good enough to qualify for a home loan. However, lenders expect more from you. They want to see a specific amount in term of savings so that you pay uninterrupted monthly EMIs even if there is recession, job or income loss. Your savings amount will lend additional financial security to your application, and place more trust on your behalf amongst lenders regarding your repayment capability. Any bonus, increment, perks should be saved to make easy loan repayments.

Home loan interest rate

There are particularly two types of interest rates – fixed and floating interest rates. While fixed rates would stay constant through your loan tenure, the floating rates would change as per the market conditions. While fixed-rate seems to the obvious choice for salaried individuals, experts say a person with high-risk potential can opt for floating interest rates. Home loans in India are taken for a longer tenure, and the market conditions are bound to change over the course of time.

Don’t’ start a new credit line

Your lender will check the fixed monthly obligation and see how reliable you are in repaying the share of your home loan. So, if you already have a huge debt, your chances of getting home loan approval seem to diminish. Before planning to take home loans in India close all your existing credit lines and don’t go for any new one. Closing credit lines will automatically shoot your credit score, and you will get instant loan approval.

Don’t make investments

Although, investment returns are very good tactics to pay a lump sum and reduced the overall loan burden; however, over the course of time if it doesn’t yield many returns it will affect your repayment ability. An investment that gives steady returns such SIP, mutual funds would definitely make senses, but don’t go for highly volatile investments such as equity stocks or forex investments.