I’m a 40-year-old single lady in want of a house mortgage to purchase a 1-BHK home. Currently, I work as a contract content material author. Should I method personal banks, PSU (public sector unit) banks, or NBFCs (non-bank monetary firms) for the mortgage? What are the deserves and downsides with every possibility?
—Name withheld on request
It may be very a lot attainable to safe a house mortgage with correct planning and consideration. Here’s how one can method it:
Loan quantity: Before making use of for a house mortgage, assess your affordability for month-to-month EMI (equated month-to-month instalments) outgo primarily based in your earnings. As a freelancer, lenders might require further paperwork, resembling earnings tax returns, financial institution statements, and consumer contracts, to judge your earnings stability. Make positive you might have a set of those paperwork prepared.
Down fee: Aim to save lots of a considerable down fee to scale back the mortgage quantity and improve your probabilities of mortgage approval. Having the next down fee may also provide help to negotiate higher rates of interest.
Lenders: You have a number of choices to discover relating to lenders. These embody personal banks, PSU banks, and NBFCs. There are pure-play reasonably priced gamers available in the market, who’ve personalized programmes particularly for structuring loans and assessing incomes for casual self-employed profiles. There are many lenders (housing finance firms), who assist first-time girls debtors with out credit score historical past or with casual incomes.
Interest charges and phrases: Regardless of the lender kind, examine rates of interest, mortgage phrases, processing charges, and different fees. Choose a mortgage possibility that provides favorable phrases and aligns along with your monetary targets.
Seek skilled recommendation: It could also be useful to seek the advice of a monetary advisor or mortgage skilled who can information you thru the mortgage course of and provide help to make knowledgeable choices.
Anuj Sharma is chief operations officer, India Mortgage Guarantee Corporation.
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Updated: 05 Jul 2023, 10:36 PM IST
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