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  • Tips for First Time Home Loan Buyers

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    Tips for First Time Home Loan Buyers

    It’s your choice. But did you make that choice with your eyes opened or closed?

    Everybody knows that there is an enormous housing crisis in India- that land is getting more expensive by the day, that house prices are rocketing, and that it is a grim situation for first time buyers to entertain the dream of owning their own home. Even going by the general estimate, there is no doubt that only a fraction can afford to bridge this gap.

    Let’s face it. Our economy is on the verge of collapse because loan providers and dealers dish out ‘white lies’ about home loan terms and conditions, making this more of a burden for the average middle class. But if you look at the picture closely, the infestation of the house loan contagion occurs because we as buyers feed them generously in our haste to own a wee bit more than a house we need.

    If you are about to buy your first home, you are more vulnerable to these hidden pitfalls. It is high time we break down the old real estate standby of ‘spend more- it is other people’s money’. Let’s dismantle them one by one.

    Things to keep in mind if you are a first time home buyer:

    1. Going back to the basics…

      … will make sure that you emerge stronger and wiser than ever. Most banks these days ask only for a 10 percent (which can be a lot by the way) down payment. Working towards putting in a five to ten percent extra ensure that you owe lesser debt and interest to the bank. It is better to not spend more than 40 percent of your income on loans, so have the EMIs scheduled in such a way.

    2. Combing through the entire home loan market…

      … is never a waste of time as there are some unbelievably viable deals out there. The cut-throat competition between loan providers have certainly worked well for potential buyers. And they do offer lowest interest rates possible coupled with irresistible cashback offers. Recently RBI too has directed banks to cut down EMIs.

    3. Knowing you salary and where it goes…

      … is important for a first time home buyer (especially in your 20s and 30s). Promotions, hikes, job jumps- there are numerous ways in which your income grows. It is a fact that the size of house you are planning to build or buy is usually a smart indicator of their future income.

      Without a doubt, much of the chaos in the home loan market recently has been because of would-be buyers going for home loans without understanding it properly. They may feel that if the rates shoot up, there is always an option of refinancing. Brash calculations too have become many people's undoing as recession in job markets actually exacerbated the situation.

    4. Disregarding the unexpected and unknowns of life…

      … when you ponder about buying a house is a commonly bad trend. You don’t know if you are going to escalate the same career graph or something different. You might get married and if you are already children can come to the picture. Priorities change drastically faster than a blink of the eye. Imagine living on one income (with your spouse’s income contributing towards settling the loan). Is it doable? If one partner opts to stay at home after a baby is born, will it put a strain on things? These queries will draw you a realistic picture.

    5. Mapping out expenditures…

      … is one game you need to play well because loan EMI plus maintenance plus living costs are anything but trivial.

    6. Settling for either the cheapest or the best…

      … can be a maxim for first time buyers. Many financial strategists strongly recommends potential buyers to either go for that idyllic dream home you covet (if within budget) or a cut-rate starter house. Half-heartedly settling for less or something midway is a bloodsucking experience. They only lose you a lot of sleep and money eventually. And if you go for a cheap option now, you can always work towards achieving what you have really wanted all along.

    7. Extending the house is a possibility…

      … which you don’t want to completely disregard. Sell-buy-move-settle process is as tedious as it comes and if this can be avoided, awesome! Pay less for a house now and renovate as per your convenience and income. This way you will never even have to shift because your property has that potential to transform into the exact replica of what you have in mind.

    Conclusion:

    Evidently, not all the above tips apply to every buyer in every situation. People, their requirements, their income streams and home loan market in each city are as diverse as it possibly can be. A wrong turn can be easily avoided with the right amount of research. Like Chanakya quoted, you needn’t always learn by making mistakes. You can very well learn from other people’s mistakes.

    Tips for First Time Home Loan Buyers Reviews

    • Indiabulls Home Loan
      "Worst Experience"
      0.5 2.0/5 "Expected more"
      Interest rates are high in Indiabulls. Their staffs are very rude and not helpful to me. I have to follow up with them each and every time by visiting the branch. Their is no net banking option. They used to deduct the money by using the ECS. They charged me around Rs. 1100 as processing fee. They offered me the interest rate of 8.6% which is little bit high compared to other banks
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jun 20, 2018
    • review Home Loan
      "Great"
      0.5 4.0/5 "Great!"
      I am having the Home loan with the Saraswat bank limited and the rate of interest is around 8.11%, also the customer service is very prompt. I am very happy with the Saraswat cooperative bank, also am very happy with them till now.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 20, 2018
    • Bank Bazaar Home Loan
      "Easy to get"
      0.5 4.5/5 "Excellent!"
      I have received a mail from bankbazaar on gmail. When i click on the link it will go through bankbazaar website. I applied the credit card page and i have received a call from the customer care executive. It is easy to get a credit card from bankbazaar people. Overall, I'm very much satisfied about the bankbazaar services.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 19, 2018
    • Indian Bank Home Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My housing loan experience was good with Indian bank, the loan amount was based on my requirement and the rate of interest was nominal when compared to other banks. Documents were collected on time and the customer service was good. The tenure for this loan is 20 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 19, 2018
    • RELIANCE HOME FINANCE LIMITED Home Loan
      "Average Service"
      0.5 2.0/5 "Expected more"
      It has been a very good loan experience and they had been given me with a good loan amount and i was satisfied. The interest rate with them had been little high but the process in getting the loan has been easy and there has not been any issues faced so far.
      Was this review helpful? 0
      , surat
      Reviewed on Jun 19, 2018
    • Punjab National Bank Home Loan
      "Very Prompt Service"
      0.5 4.5/5 "Excellent!"
      I have a got loan on time. Everything was done in a smooth process. I'm yet to pay the first month EMI. The people who are working in PNB housing are very prompt and responsive. They have offered me very good interest rate. For the first year, they have offered me interest rate of Rs. 8.4% and from the 2nd year the interest rates will be based on floating price. I have got a separate relationship manager.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 19, 2018
    • Bank Bazaar Home Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Its is easy to get loan. They have multiple option to choose the best bank. This is the 1st transaction i have ever made. I'm using this website rarely. Whenever i am in need i will use bankbazaar. Through Internet search i came to know about bankbazaar.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 19, 2018
    • Punjab National Bank Home Loan
      "Easy Process and Good Experience"
      0.5 4.0/5 "Great!"
      Documentation process was quite easy. I have got the loan on time. The banking people are very helpful. As per the market standards they have offered me interest rate. Next month i have to pay the EMI. The processing fee is nominal when i compared to other banks. The overall experience is good and I'm very much satisfied about.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 19, 2018
    • ASPIRE HOME FINANCE CORPORATION LIMITED Home Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I got my housing loan form Aspire home finance corporation ltd . Am not satisfied with rate of interest which is too high The customer service and response is good. It took 10 to 15 days for the documentation and approval process. They gave the tenure period of 20 years which i make the payment through ecs .
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 19, 2018
    • ICICI Bank Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a very good experience with them and the process has taken nearly ten days in getting the loan amount. The loan amount which they had provide had been satisfactory and interest rate also had been okay, where it has been 9.30% initially but now it has been changed to 8.50%. There has not been any issues faced so far.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jun 19, 2018
    • ICICI Bank Home Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken housing loan from Icici bank , as they have given promising rate of interest while comparing to other banking which available in market There is no processing fees and easy approval process , payments made through ecs process .customer service and customer response is good regarding queries. The tenure period is 20 years .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 19, 2018
    • ICICI Bank Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken housing loan from Icici bank , as they have given promising rate of interest while comparing to other banking which available in market There is no processing fees and easy approval process , payments made through ecs process .customer service and customer response is good regarding queries. The tenure period is 20 years .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jun 19, 2018
    • ICICI Bank Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken housing loan from Icici bank , as they have given promising rate of intrest while comaparing to other banking which available in market , easy approval process , payements made through ecs process .customer service and customer responce is best reagarding queries provides solution. The tenure period is 10 years .
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 19, 2018
    • LIC Housing Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I took a housing loan from the LIC housing Finance. The Builder processed the loan for me. The interest rate was 10% initially reduced the rate to 8.% recently. The tenure of the loan is 17 years. There are no additional charges such as part payment charges. Overall it has been a really good experience.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 18, 2018
    • review Home Loan
      "The Service needs Improvements"
      0.5 2.0/5 "Expected more"
      I took a home loan from the CANFIN, The service was also good, I confirmed and reduced the rate after they tried to manipulate my father with incorrect information. The loan amount was 15 lakhs, I got the loan amount with in 1 month, The interest rate was nominal when I took it. Now it seems high because the rates come down. Also they charged me almost 4000 rupees for reducing the interest rate to the current one.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 18, 2018
    • Sundaram BNP Paribas Home Finance Limited Home Loan
      "They have to act on what they have committed to the customer"
      0.5 4.0/5 "Great!"
      Initially, the have copy cat all my documents which i have already provided in banks. They said they will processing the loan immediately like within 15 days. But after that they started my process fresh and asking the documents from me. But the have sanctioned the loan after 2 months. They are not promised their words. They are very diplomatic in handling the things. It is not like their terms and conditions like banks. The interest rate was competitive and better. Initially they said no bank can give fixed interest rates.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 18, 2018
    • Bank Bazaar Home Loan
      "Satisfied with Bankbazaar"
      0.5 4.0/5 "Great!"
      Bankbazaar is providing very good services. I have received a mail from bankbazaar. They have given more option and the executive choose the best option. I have started using this website for 2 months. They have all the documents from my office. The executive very helpful and very Co-operative
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 18, 2018
    • Punjab National Bank Home Loan
      "I'm Satisfied with PNB Housing"
      0.5 4.0/5 "Great!"
      They have given me that the rate of interest rate is 8.5% is applicable for 1 year. After 1 year, the interest rate is depends on the market rate. Process fee is nominal. Processing fee is okay and its like other banks. I have got the loan on time. They executive helped me a lot to sanction the loan quickly. The documentation process was good. I'm paying the EMI of Rs. 35000. I used to make the payment through ECS.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 18, 2018
    • Bank Bazaar Home Loan
      "Very Good Website"
      0.5 5.0/5 "Blown Away!"
      They have suggested me a very good bank for the right time. I can choose the right bank from the options. The follow up also very good after i select the bank. Overall, I'm happy about the services. Much Nationalized banks are not on the list for their home loan. I'm using bankbazaar for 3 years. Mainly i will use to know about the EMI calculator.
      Was this review helpful? 0
      , salem
      Reviewed on Jun 18, 2018
    • Punjab National Bank Home Loan
      "Easy to Get loan"
      0.5 5.0/5 "Blown Away!"
      I have got a on time. I have to wait for sometime on registration. The representative was very helpful. I never called with their customer care. I have applied a loan amount of Rs. 35 lakhs. They charging 2.5 % as processing fee and interest rate of 8.5%. Overall, I'm satisfied with the PNB housing.
      Was this review helpful? 0
      , salem
      Reviewed on Jun 18, 2018
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