Owning your land and having your own house has been the golden dream of all the ages. In amongst all the cultures, owning a property has been an important milestone in establishing the success and prosperity of a person or family. Getting your own house has many benefits. The first being, once you are the sole owner of your house, you live a stable rent-free life. Your shelter becomes permanent. Your house also acts as an investment. Property rates are always going up. Your house not only saves you rent but also increases in value with time serving as a double benefit. And finally, your house becomes the heritage that you leave for your children and their coming generations.
Getting a house has become very easy just apply for a mortgage loan. You can take up a housing loan now and pay the EMIs with the money that would have otherwise gone in rent. After your repayment tenure is over, you become the sole owner of the house, turning this into a hit investment.
Here are 5 tips to get mortgage loan on low-interest rates
Down payment: Like most people, you can divide your loan into two parts – Down-payment, and the actual loan. By the rule, you have to make a minimum of 20 % of the purchase price as the down payment. Always make sure to pay the maximum money as you can in down payment. it reduces your loan amount and makes it easy for you to repay your LAP loan interest rate.
Credit Score: One of the most relevant factors in determining whether you will qualify for a mortgage loan is your credit score. Those who don’t know what it is. Your credit score determined the likability of your loan repayment to the lenders. Your credit report is created and maintained based on your past financial transactions. How well you have repaid your loans and EMIs in the past. Maintaining a good credit card report is essential to getting mortgage loans. Some people take up debt from credit cards, and when it comes to repayment, they settle by paying half the amount that they originally owed. It marks the person’s credit card report for settlement and any future loans that the person might take get affected. Better credit card reports result in lower interest rates.
Employment stability: Your financial stability is of prime importance to your lender. If they can verify that you have a stable employment situation, you become a reliable creditor, and you might just get lower interest rates.
Debt-to-Income ratio: Another important factor in your loan approval and interest rate is our debt to income ratio. If you already have a few loans going on your fixed income. You have a higher chance of getting your loan rejected or getting a higher interest rate. Lower your debt to income ratio to get lower interest rates.
Market Research and Negotiation: Whatever deal you are having is not set in stone. Always negotiate for a better offer. Do your market research. Find out the best lender for you and negotiate for the best offer you can get.