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8 ways you can save money on home loan

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8 ways you can save money on home loans

So you’re buying a new home and want to get the best deal possible.

There is a good deal at home and many other things you can save money.

In this article, we are going to explore 5 ways to save money when buying a home.

1. Second source of income

Nowadays there are many people who make part-time income, They are many opportunities that are available on the internet to make your part-time income just you need to spend some time on the internet. It will keep you free from your home loan tensions because you will have enough money to pay off your loan amount.

2. Moving back in with your parents

Generally, people prefer their home at hometown so if you belong to some metro city then you can search a job near to your hometown so that you can save expenses such as rent, electricity bill and transportation.

3. Check and leverage your CIBIL score

Lenders tell you that your credit scores are not good, so they can not borrow you at a lower fee. If you have already checked your CIBIL score, you can calculate it as satisfactory. So check your CIBIL score before applying for home loans. Lenders offer loans at higher interest rates to a higher CIBIL score.

 

9 Step Guide to Buying a New House Across India

 

4. Look for options

Do not take a loan from a bank that has your savings account. Many lenders are willing to provide good rates and borrower-friendly terms. So visit multiple lenders and analyze their basic offers. You can get a much better loan offer than what your long-term banking partner offers.

5. Leverage seasonal offers

Providing housing loan offers to customers, banks and financial institutions at regular intervals. Take advantage of these offers and get a home loan with a low-interest rate. Nevertheless, in this case, there is no need to be vigilant and teaser rates can be triggered. Teaser home loan is an adjustable mortgage, you will have to pay a lower interest rate in the early years, but as you pass the time you have high-interest rates. Tricky is one! So, you know the terms and conditions, including the right research, switching, payment costs and the amount of loan processing before you enter the offer.

6. Make a high down payment

Lenders usually ask to pay borrowers from 15% to 20%. But that does not mean you can not make a high down payment. Making large down payment significantly reduces your EMI burden and helps to save money on interest. So try to make as much downtime as possible.

7. Strict negotiations

This factor is much smaller. The lender that many people give is a final deal but it is not the case. All terms and conditions apply to the discussion. So if your loan application is approved and you have a higher CIBIL score, make sure you have negotiated to get better deals for the executives. After all, your hard earned money which you will pay.

8. Switch your loan to another lender

If you already have a home loan, other lenders may be willing to provide you with the lowest debt lending. Look for such offers. Even after considering processing and credit transfer charges, the new lender’s proposal may be more expensive for you in the long run.

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