Want to avail lower Home Loan interest rates in Lucknow? Read on to reveal five basic yet vital tips to get an affordable Home Loan in Lucknow!
Lucknow is the city of Nawabs and if you are looking to make the city your permanent address, then buying a home on a Home Loan in Lucknow should be a good idea.
However, for most of the similar borrowers, right from applying for the housing loans and repaying the EMIs means spending a massive cash flow each month.
As a result, any reduction in a Home Loan interest rate can help you save money if you are also looking to reduce your interest rates in Lucknow or anywhere else.
In the same context, let’s provide you with some handy tips that will help you lessen the Home Loan interest rate and also reduce the EMIs outgo.
1. The CIBIL Score
The concept is simple to understand – the higher your credit score, the lower your Home Loan interest rate. You should know that lenders offer the best-suited Home Loan offers to borrowers with a CIBIL score of 750+ or more. Thus, if your credit score reads 750 or more, you have a fair chance to avail a Home Loan in Lucknow at a lower rate. Monitor your credit report frequently and resolve mistakes and other issues, if any. You can improve your CIBIL score if you pre-pay your current loan or pay off the loan instantly along with settling credit card outstanding.
2. Put Down a Higher Down Payment
Always strive to put down a large down payment so that you get a low principal figure while you apply for a Home Loan. Lenders always calculate interest rate as per the principal figure. Thus, the smaller your principal is, the lower a Home Loan interest rate and a lesser EMI will be available to help you save money each month. Thus, make sure to put at least 20% of the home purchase price and pay interest and EMIs only on the remaining 80%. Ask your lender if you can put down more amounts if you have some extra funds.
3. Go for a Longer Tenor
Are you up for a Home Loan in Lucknow with an extended tenor? You will end up paying smaller EMIs because your interest rate and the principal amount is distributed over a larger number of months. But, you may also have to pay the EMI and interest for an extended period. Hence, you may pay more interest on the Home Loan’s entire duration.
4. Try to Negotiate with your Lender
Did you know that sometimes you can simply ask or negotiate with your lender to offer you a reduced housing loan interest rate? Yes, unless you don’t ask, you would not be able to be sure if it could be possible or not! Further, if you have an old membership status with a lender, you can ask them for the same. Lenders may not want to lose a potential customer and to value the long association that you have with them; you can stand to seize a lower interest rate.
5. Always Ensure to have a Sound Employment History
Home Loan creditors always give weight age to such borrowers who have a consistent employment history. Yes, if you want to avail a Home Loan at a reduced rate of interest, it is mandatory to have a minimum employment history of three years at least. Your Home Loan application may not get approved if you love to switch jobs. Even if you get a loan sanctioned by rarity, you may have to cough up a higher rate of interest, making it almost unaffordable for you manage since a Home Loan runs for longer tenors.
The Bottom Line
A Home Loan in Lucknow or any other Indian city will come easily approved to you and at a lower Home Loan interest rate if you deploy all tricks mentioned above. Happy Home Loan application in Lucknow!