Once you have figured your requirements, your resources and your future plan, the next most crucial step would be choosing the housing finance company (HFC). It is very important to choose the financer with extreme care and proper contemplation. You must check out its past track record as you are planning to enter in to a long-term relationship with it. If you can, you must talk to few people who are availing this service already to know the execution of the terms and conditions of the HFC. As your home is one dream that you have long wished to fulfill, do not let it turn into a nightmare by the hassles of the Housing Finance Company and EMI woes.
The task of selecting one company amongst the umpteen numbers of available companies becomes all the more difficult, if you take into consideration the mushrooming housing finance market in the country. There are about 32 NHB-recognized HFCs and 19 nationalized banks in the country which also cater to housing finance as a priority service and add the housing loan section to their existing category to reach out to the customers. Keeping in concern all these factors, one needs to exert caution while zeroing in on any home loan company. Explore some basic tips for choosing a finance company for your home loans.
Before you do anything else, make one thing very clear in mind that you do not have to blindly run behind lucrative offers. You should not ever select a company that is least known and is offering extremely lucrative offer in terms of interest and payment. The next very important point would be not zeroing on the companies who have a very vague offer giving rise to confusions at every point. Make your mid to select the company which has a respected name in the market and also have some customers you can directly interact to.
Apart from this, the matters like interest rates, repayment period, home loan agreement and eligibility are important factors. Read all the terms and conditions carefully and do not forget to take an expert advice. Other than this, never forget to check out the hidden costs that may come from the housing finance companies. Forestallment penalty is unquestionably one of the most expensive hidden costs faced by borrowers. Those HFC which charge this penalty should certainly be avoided if one plans to pre-pay the loan in case of avilable cash resources in near future.
One other factor that needs to be kept in concern are that there are certain companies, which do not pay for the technical valuation report of the property while others insist on a registered mortgage that will increase costs of taking the loan. Therefore, instead of reading on the lucrative offers of the company, it is important to read and understand the technical aspects of the offers. So if you want to be in a win-win position while dealing with the Housing Finance Company, the onus is on reading the fine print in the loan document and seeing through the maze of exciting offers.