Know these important things before buying a house on loan

Buying a house is a big decision in life and it is common to take a home loan for it. But before taking a loan, it is important to understand some important aspects, so that you do not have to face any problem later.

Comparison of interest rates:

In fixed-floating-fixed, EMI remains constant, in floating it changes according to market rates. Compare the interest rates of different banks.

Loan tenure:

In the long term, EMI is less, but interest has to be paid more. In short term, EMI is more, but interest will be saved.

Importance of credit score:

With a score of more than 750, you will get a loan at a lower interest rate. Bad credit score can cause problems in getting a loan.

Hidden charges:

Get information about processing fees, document charges, foreclosure charges etc.

Down payment:

EMI capacity like banks give loans up to 75-90% of the property value. EMI should not exceed 30-40% of your income.

Tax benefits:

Under section 80C, you get exemption on principal up to Rs 1.5 lakh. Under section 24 (B), you get exemption on interest up to Rs 2 lakh.

Documentation:

Keep KYC income proof, bank statement and property documents ready in advance.

Check the credibility of the bank at your level.