Home loans are an elite choice to finance your dream house and tranquil to access too. But managing a house loan can be tedious. Think nothing about it, as Square Yards has got you covered. We have enlisted easy-going steps which will assist you in effortlessly managing your home loans like a pro. But do not lose sight of the fact, that a home loan is a long-term commitment, and you need to pay on the dot EMIs to enhance your credibility. It can be troublesome to manage the unlooked-for overheads in the long run. The most crucial slice to properly plan and manage the finances is timing it conventionally. Recall all your goals and commitments, then apply for home loan online. Compare and contrast numerous lenders to get the lowest home loan interest rates that draw on your credibility.
Plan everything from bottom to peak, before applying for a home loan. Additionally consider every minute aspect that orients around home loan including interest rates, repayment, home loan EMIs and much more. In the end, being familiar with everything which can affect or alter your home loan is crucial. Availing home loans can be easy for once but managing it with full efficiency for the entire loan tenure can be daunting. But with our small and clear steps, you can get your best shot. No matter in what situation you get struck, these points will take you out of it with utmost ease.
Are you thrilled to move into the home about which you always imagined? Great!! Did you take housing finance to change your dream into reality? That’s Awesome!! But it’s not the end. Now is the time to manage it well and it will keep on going till you repay your home loan fully. Purchasing your own house is not less than accessing a great milestone in your life. But it comes with certain responsibilities. Know how well you are executing your finance. Moreover, you must manage everything in such a way that it never feels like a burden on you. Make things easier for yourself by following up a systematic well-planned procedure.
We are here to prepare you with the entire home loan procedure. We have catalogued a series of foremost tips that will help in managing home loans with better efficiency. Here is a rundown of what distinct steps you can contemplate for exceptional management of your House Loan:
At Earliest Manage You Finance
Now by reason you have a House Loan to repay, it becomes crucial to manage your finances. You might have a home loan coupled with other loans such as car loans, credit card dues and much more and all has to be paid on time. Thus, the foremost thing, to begin with, is money management. Sharpen up your money management skills and begin with enlisting expenditures along with the monthly EMIs. You can’t mess all of it and later blame the situation for the things you might go through.
No worries!! We are here to show you the path, all you need to do is follow up. Start with making a list of things in which you are investing your money. Add everything including your EPF, FDs, PPF, and postal deposits. The reason behind this step is, you must know where your monthly income will be going and how much you will save. If there is any such investment that is not mandatory, then you can drop those investments to focus more on the home loan repayment.
Saving is the foremost deal rather than investing in places where you won’t get good returns.
Consider Paying High EMIs
When you count on paying a higher EMI amount you access enhanced home loan management. When you apply for home loan online, ask the lender for high EMIs. It will allow you to access lower repayment tenure in addition to the lowest home loan interest rates. Seems to be difficult. Yet better than repaying a loan amount for decades with a smaller EMI amount.
Relying on high monthly installments helps in the reduction of the house loan tenure. Furthermore, it results in a reduced rate of interest. Thus, technically when you opt to pay more on a monthly basis, you reduce the financial burden from your shoulders. After complete loan closure, you can plan other things including retirement as you won’t have to pay the EMIs lifelong. Wrap your home loan as soon as possible.
Make Partial Prepayments
Despite sticking to a systematic EMI procedure, try paying specific amounts towards the principal amount at least twice a year. When you make partial prepayments, you reduce the principal amount which automatically results in reduced EMIs. Whenever you have access to notable funds, pay it as a prepayment and lower the EMI burden. For example, if you are recently promoted or your FD got matured, use it to make a partial payment of your house loan. Additionally, it will reduce the overall home loan tenure.
As mentioned earlier, paying off housing loans offers you sufficient time as well as resources for planning other essential things. The best part of home loan prepayment is, usually banks don’t ask for penalties and other charges when the borrower makes partial prepayments. Still, be on the safer side and enquire about the correlated charges before you apply for home loan online.
Switch to a Lower Interest Rate Through Balance Transfer
The interest rates are uncertain and keep on changing. It is recommended to keep an eye on the changing interest rates and closely monitor what your lender is charging. Whenever you see a huge dip in interest rate, consider discussing it with your lender. If you agree on a reduced interest rate, well and good else switch to another lender who offers the lowest home loan interest rates. Well, don’t consider balance transfer based upon the interest rates as you need to consider other crucial factors too.
One more critical factor is outstanding loan tenure. If you are in the final years of repayment, then the idea of balance transfer will end up costing more. By this time, you would be already done with paying the interest component, thus you won’t save more. On the other hand, you will have to pay imposed charges and a processing fee. So better be cautious, while stepping into a home loan balance transfer. A heartening factor though is the absence of a prepayment penalty. You will just have to pay the processing fee imposed by the new lender.
Carry Out the Math Appropriately
Don’t want to indulge in the calculation part? Try your hand on loan calculators? It is best for you specifically when you are not into calculations and hate dealing with figures. You don’t have to carry out complex calculations, as it is already formulated. All you need to do is input values such as rate, time, amount and that’s it. The best part about the home loan EMI calculators is, they are easy to use. Compute your monthly EMIs, in one go through EMI calculators. You can compare various home loan products and predict which one will be the best for you.
In the end, the most essential thing you need is a tool that can handle your calculations effortlessly. Manage your monthly expenses, by calculating EMIs in advance and meet your financial commitments with utmost ease.
Missing Home Loan Payments- A Big No!
Regardless of your bad financial situation, try your best to pay the home loan EMIs on time, without any skip. It is not just a good habit, rather it is important as it reflects on your credit score. When you apply for a home loan online, all you look for is the lowest home loan interest rates. You can avail of it only through a good credit score and timely repayment record. Even if you think to count on balance transfer the new lender will look into previous payments and credit scores. Borrowers’ credit history is the utmost priority for house loan approval as it determines the credibility.
Every time you miss any repayment your credit score moves a bit lower. This further results in the rejection of credit card applications and other loan approvals. So, all you need to do is plan the monthly budgets properly.
Wrapping Up
Pre-planning together with budgeting is the key to manage house loans like a pro. When you apply for home loan online, initially plan your expenditure and evaluate if you are left with the amount to pay the home loan EMIs. In addition, when you do everything with proper planning, you can access the lowest home loan interest rates. By keeping these tips into deliberation at your fingertips, help in managing your housing finance is just like snapping your fingers. If you do stick to these tips, there are no chances of missing out on home loan EMIs.
