Applying for a loan online to fund the purchase of your home saves time and money. In addition, you may benefit from lower interest rates and attractive borrowing terms.
Using this option allows you to compare multiple quotes from different lenders. You also enjoy the convenience of applying from the comfort of your home. You may apply any time without needing to visit the branch during their working hours.
There are several benefits of applying for a housing loan online. However, here are five things you must consider before selecting this option.
- Check your credit score
You may check your credit score from Credit Information Bureau (India) Limited (CIBIL) website. CIBIL is a credit information company that retains records of your loan and credit card payments. Having your credit score handy is necessary because most lenders will require this at the time of your housing loan application. Also, higher the credit score, higher will be your chances of loan approval. It is, therefore, recommended you check your credit score prior to commencing the application process.
- Know current rate of interest
It is advisable that you stay updated with the interest rates that are currently prevalent in the market. This information is easily available on several online resources. These rates may also be available on the lenders’ websites. Knowing the rates offered by different lenders will help you compare multiple quotes to determine the best interest rate.
- Determine your loan eligibility
You may choose a home loan online calculator to determine your eligibility. These calculators are user-friendly and convenient. You need to provide some basic information, such as age, income, Equated Monthly Installment (EMI) amount, and the value of the property to determine the approximate loan amount you may receive.
- Calculate the total cost of borrowing
In addition to the rate of interest, the effective borrowing cost includes other fees and charges. Most financial institutions levy additional charges, such as processing and legal fees, which increase the borrowing cost. You must compare these additional charges levied by various lenders before applying for a home loan in order to determine the total cost of borrowing.
- Ensure the security of the website
You will find a large number of websites that allow you to apply online. However, it is crucial you choose a secure site to proceed with your application. This is to prevent the misuse of your personal information that is provided when you apply online. Furthermore, you must opt for a reputed lender to avoid any unpleasant surprises in the long run.
Applying for the loan online has made the entire procedure convenient and quick. Considering the aforementioned factors before making your choice will safeguard your interests while ensuring you receive the best terms on your housing loan.