If you believe that finding the perfect dream home was overwhelming, wait until you start looking for best home loans in India. With so many lenders available, selecting the right home loan for your dream purchase can be very confusing. We have listed five handy tips that can make the process simpler.

Buying a home of your own is probably the most common dream for most Indians. And with so many lenders offering home loans, it is now much easier to fulfil this dream. But as almost every bank and NBFC now offers a home loan, it can be difficult for the buyers to select the best lender.

To make things easier, we have created a list of 5 handy tips that can surely help you pick the right lender for your home loan.

  1. Lowest interest is not always the best

While the interest charged by the lender is an important consideration when selecting best home loans in India, it should not be the only consideration. It is not necessary that the lender who is offering home loan at the lowest rate will provide best services too. Make sure that the lender is reputed and can be approached easily in case of any queries concerning the loan.

  1. Check your credit history

Lenders in India now lay a major emphasis on the CIBIL score of the loan applicants. It is usually recommended that you should have a credit score of more than 700 to get the best deal on a home loan. However, it doesn’t mean that you cannot get a loan if you have a poor credit history. There are NBFCs in India that offer home loans to individuals with lower credit score.

  1. Don’t forget to compare

Make sure that you compare the terms and conditions of different lenders before making a decision. Fortunately, you don’t need to visit multiple lenders in search of the best loan. This can now be easily done online. Check the website of the lenders to get a better idea. You can also check online reviews and use EMI calculator to ensure that you select the right loan and affordable EMIs.

  1. Additional charges

Lenders charge a processing fee to cover the expenses incurred when verifying your documents and eligibility. This fee is usually deducted from your loan amount. Make sure that you check the processing fee of the lender as different institutions charge a different fee. Apart from the processing fee, there can also be prepayment and foreclosure charges if you want to prepay or foreclose the loan. Ensure that you do check these additional charges as well when selecting.

  1. Understand what is right for you

Do not get carried away when talking to a loan officer who you believe is offering an unbelievable deal. Remember that a loan which sounds too good to be true probably wouldn’t be as good down the road. Home loans last for 15-20 years and even more, so make sure that you get all your doubts cleared when discussing the loan with a loan officer. Also, do not simply believe what a loan officer is saying. Make sure that the terms are the same what the loan officer discussed on paper too.

Your relationship with the lender would probably last for several years and involve lakhs of rupees. A wrong decision can cost you a lot of money. Use the tips mentioned above when searching for the best home loan and you are sure to take a wise decision.