Some Essential Factors to Consider Before Opting for a Home Loan in India

Shortlisting a locality and earmarking a builder, allocating funds and consulting brokers – buying a home is a significant personal decision and requires extensive planning, research and consideration. Consequently, setting a budget limit and establishing a systematic funds allocation plan are prerequisites to a successful real-estate investment venture.

Today, premier builders in Dahisar and other such emerging areas in Mumbai offer spacious 1 BHK flats at affordable rates. However, even so, individuals and families often have to supplement their existing savings with home loans to be able to afford decent residential apartments. So, have a look at some essential factors you may need to consider before availing a home loan in India:

1. Earmark Affordable but Aesthetic Real-Estate Projects
Your ideal home should be spacious, aesthetic and comfortable while also being reasonably priced. While looking for real-estate projects, consider key aspects like the neighbourhood, the base-rates plus overhead expenses of the property, the flat’s aesthetics and floor area etc. Then, compare these factors to your budget limit and requirements and earmark a flat strikes the right balance between all these aspects. For example, premier 1 BHK flats in Dahisar East are typically available for reasonable base-rates of approximately 50 lacs.

2. Evaluate Your Purchasing Power Vis-à-vis Your Financial Requirement
Next, you may want to understand your current purchasing power vis-à-vis the total budget requirement to buy the flat. Your purchasing power should be a logical calculation of your current income, long-term investment returns and dividends, and other savings. You would need to allocate some funds for your current sustenance and sum up the remaining amount to derive your purchasing power for the real-estate investment. Then, based on the aggregate price of the property you have earmarked, calculate the amount you would need to borrow as a home-loan. Such a systematic account helps one minimize the debt amount and assess the situation more practically.

3. Know Your Lender: Research on Different Home Loan Options
Taking a home loan is a major financial decision – researching on the various options gives the borrower a clearer idea of which one to opt for. Consider different aspects such as the down payment, interest rates levied, EMI option, repayment duration etc. It helps to consult more experienced real-estate investors about the best home-loan options with respect to all of these factors.

4. Establish a Secure Repayment Plan
The next step is to establish a secure loan repayment plan, ensuring that you repay all your debts as early as possible while not compromising on your regular expenses. Here, you would need to reflect on the specific time intervals at which you would repay the loan. Based on this inference, one may then determine the denominations of the amount to be paid per instalment.

5. Conclusion
Today, many flats for sale in Borivali East and other such bustling neighbourhoods are available at reasonable prices, thus minimizing the home loan requirement of buyers. However, if you still need to take a home loan, the first steps would be to determine your financial needs and explore the available home loan options. As premier real-estate developers in Mumbai, V. K. Lalco Group offers premier 1 BHK flats in VKLAL VISHNU PHASE I located in Dahisar East and VKLAL HARI PHASE I in Borivali East. Click here to know more about our projects!