With growing financial institutions mushrooming all over, it is now becoming easier and easier to get a home loan. Gone are the days when homes were built or bought on the basis of savings made. With changing economy even the mindset has gone for a change and homeowners today are getting younger. With the help of Home Loans the younger generation now finds it easier to buy property and also see their value rise over the years.
Nevertheless, it a significant financial decision which needs serious thought. It calls for few vital steps whenever you are considering or applying for a home loan. Here are few dos and don’ts to follow as a ready reckoner.click here for more info
(i) Pay all your debt and loan payments on time. A delinquency on a loan or credit reduces the credit score. The score determines the amount of the home loan.
(ii) If you find it to pay off all the bills in a certain month and feel to drop some, drop the credit card payment first, followed by the installment loan payment and finally the existing home loan. Credit scoring system considers similar kind of loans at first in deciding the type of score to be assigned.
(iii) In mode of installment payments, place the smaller amount at last. This helps you to end up with larger mortgages but also allow you to replace non-tax deductible, high interest rate debt with lower rate home loan debt with deductible interest.