There is no feeling more satisfying than having your own home but sadly not every person can afford to buy a home. Having cash issues or going through a financial crisis doesn’t mean that you can’t have your own home. That is when home loan plans become useful. Mostly home loans come in handy when you are running a small business or have a job in a small company. That job or business can’t even give you the down payment for buying a house and then you get a home loan.
There are thousands of banks and other companies that offer home loans. They only vary because of their terms and conditions and the interest rate they offer. It’s very effective to do a comparison between different home loan plans and then decide the best that suits your situation. Many websites offer to do this comparison online but you can do this by yourself too. It requires a little effort but this way you would be more certain about your choice. To do this, you have to go out into the market and check for the different deals that banks are offering you. The first thing that fascinates you about a home loan is the interest rate the lender is offering. Interest rate greatly depends upon the down payment and the amount of money you are lending.
Here is a preview of a free but comprehensive Home Loan Comparison Analysis Template created using MS Excel,
Here is the download link for above mentioned Home Loan Comparison Analysis Template,
There are some ground rules that you should apply while comparing two or more home loan plans. Some of those rules are the following:
Focus on the whole deal instead of just looking for interest rate:
Usually, the low-interest rate comes with a high structure fee. If the loan plan has several terms and conditions, there are chances you won’t read them all and then end up paying a high-interest rate or more fees.
Infrastructure is very important:
To choose the right loan plan, you have to consider your sources of income and the features you want from the loan plan. The loan you are getting must fulfill all your needs and has to be compatible with your circumstances. Try to find a deal that goes easy in the first year. Go through every step deeply because this loan is going to have many effects on your family’s financial situation.
Find the right man:
It’s very important to find the exact man according to your situation and the best way is to go and ask your relatives and friends. If you are getting a loan for the first time it’s better not to decide anything on your own and discuss your circumstances with your relatives who faced the same situation. Every lender has his own rules and may not be suitable for you even if he was good with one of your friends.
Ask whatever you want and don’t hesitate:
Ask as many questions as you want and try to satisfy yourself. Don’t feel shy to ask questions about anything even remotely related to the loan plan.
Hire a broker:
Always find a middleman called a broker. These types of persons have a lot of experience in this field and probably end up providing you with the best home loan plan.
