How to Compare Home Loans in Delhi?
Right when you decide that you are going to take home loan to buy yourself a new house, the dilemma over choosing the lender starts baffling you. Sometimes it turns out to be the most strenuous job to find a lender. With every single person suggesting different names, it gets messier and too difficult to choose the most appropriate option. Since buying a home is probably the largest deal you’ll ever make, you should never hesitate to devote time to make things work in your favor. In the similar context, when you look for home loans in Delhi, it is necessary that you utilize each available resource to find the best deal.
Important Elements need to be compared For Home Loans in Delhi
So here in this Blog, we will understand how to compare home loan schemes of different lenders. There are various elements that need to be compared individually while comparing home loans. We will unearth the most crucial ones of them one by one.
The most important part of a home loan is the interest rate. Government institutions usually offer home loans at similar interest rates, but it tends to vary with different private lenders and financial institutions. Interest is categorized into two parts – fixed, and variable. When it is fixed, interest rate remains same for the life of loan. While in case of variable interest rate, you pay installments at a fixed interest rate for a particular interval of time and then it is revised as per the norms.
Next thing that is important from the comparison point of view is – APR. It is annual percentage rate after all costs are financed. Make sure you compare it as well, as it has the potential to make a huge impact on your installments.
Next on our list are lock-in fees or rate lock. It protects the borrower from rate fluctuations for a fixed duration. During the lock period, fluctuations in rate will make no impact on your payment. So don’t forget to compare it and choose the most suitable one.
Now comes the application fees. It is set by the lender and is usually same for each applicant. It is the amount that has least tendency to differ from lender to lender. So you don’t have to bother much about it. This should be last on you comparison list as it makes the least impact on your payment.
Once you submitted the application, your application is processed and you have to pay for that as well. Processing fee has greater tendency to vary from lender to lender, so make sure you compare it.
Certainly there are many other costs involved when applying for home loans in Delhi. Surveyor fees, homeowner’s insurance, title insurance, escrow fees, inspection fees, and taxes are some to mention. So make sure you do your homework before you make a deal. Comparing different lenders will get you a different experience that will definitely be satisfying for a long time.