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Points to remember if you are applying for a home loanBuying a new house requires a huge sum of money, and most buyers depend on financial assistance. Home loans can help you realise the dream of owning a house without waiting to save up for the entire cost. Home loans also come with tax-saving benefits. If you are looking to buy a house using the home loan route, here are a few things to keep in mind.CIBIL ScoreA healthy CIBIL score, preferable over 750, will likely increase a borrower’s chances of securing a home loan. The score also has an impact on the interest rates and loan tenure.So, if you are planning to get a home loan, it is advisable to clear all your pending loans and follow disciplined financial practices to boost your CIBIL score.Complete DocumentationWhile applying for a home loan, the borrower must submit a series of supporting documents, including income proof, bank statements and property documents.Based on these documental proofs, the lender offers in-principle approval for the loan application. The final loan sanction is subject to positive property verification.EMI ManagementSudden loss of income due to market instability, illness or any other issue may impact the borrower’s loan repayment capacity. It’s important to have a plan B for loan repayment while considering the home loan options.To secure future loan repayment, it’s advisable to secure a lump sum amount equivalent to at least six months’ estimated EMI. This pool of money will help you repay the home loan in an emergency without borrowing from your other investment.Down PaymentBanks offer only a part of the property’s value as a loan. Lenders usually offer a loan between 75 and 90 per cent depending on the borrower’s eligibility and other factors. The borrower must pay the remaining amount as a down payment at the purchase time.Making a sizeable down payment at the time of property purchase can help you lower your monthly obligation or reduce the tenure of the loan.Terms And Conditions Of The LoanBefore finalising the loan, it is important to get versed with the terms and conditions of the option.While a loan appears cheap with an apparent low EMI, the lender may levy hidden charges and higher processing fees. The borrowers are advised to compare all the available options in the market to get the best deal.



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