Borrowers opting for a home loan should use a home loan EMI calculator in the first place to know their estimated monthly instalments. Besides, a first-time borrower should also consider the following factors for a better deal.
5 best tips for first-time home loan borrowers
- Keep a high credit score
A borrower's credit score plays a significant role in obtaining a higher home loan amount. Individuals with a credit score above 750 can opt for a home loan at current home loan interest rates.
- Make a sizable down payment
Making a higher down payment amount helps borrowers pay lower EMIs. This is because a higher down payment reduces the borrowing amount, so the borrower needs to repay a low amount within the repayment tenor.
- Know the eligibility criteria
One should know the eligibility parameters before applying for credit. Financial institutions typically evaluate credit scores, income profiles, and necessary documents during the home loan approval stage.
- Compare interest rates of multiple lenders
First-time borrowers should always tally the interest rates of multiple lenders to avail the best deals. They must also check additional charges levied on home loans by different lenders. This thorough research can also help borrowers who are planning to opt for a home loan balance transfer.
- Negotiate for better deals
After fulfilling all necessary criteria, borrowers can negotiate with the lenders for discounts on home loan interest rates if they meet all the eligibility parameters and have an excellent credit score.
So, first-time borrowers should check the mentioned strategies before applying for a home loan. It will help them in availing better interest rates.
