Are you a lawyer who is all set to buy his/her dream home using a Home Loan for lawyers offered by leading banks and non-banking finance companies (NBFCs)?
You are not alone! There are many lawyers and other professionals who may not have their own savings to fund a home purchase and rely on a Home Loan to help them!
Yes, a Home Loan for lawyers is an option that you can avail to get a higher loan amount at reasonable interest rates. However, before you go ahead to opt for a Lawyer Loan, you need to consider some points to help you make your application stronger!
In the same context, here are some crucial steps that every Home Loan borrower should consider before applying for a housing loan for lawyers:
- Be Aware of your Maximum Loan Eligibility
The Home Loan amount that you are willing to grab depends on the income and track record of your previous loan repayments and credit card dues. A lender can provide you up to 90% of the total property value as the loan amount depending on your income. They will also consider your salary slips and other income heard while determining your exact loan amount eligibility. Thus, a lawyer can check his/her loan eligibility by using a Home Loan eligibility calculator available free at a lender’s website. When you are aware of the total loan amount that you will get, you can apply for the same, and there will be no rejection issue.
- Check your Credit Score
Another thing worth considering is checking your Credit Score as lenders will also pull out your CIBIL Score to gauge your final Home Loan eligibility. A Credit Score of 750+ out of 900 is considered ideal for loan approval and also pocketing lower Housing Loan interest rates. Your creditworthiness will be decided as per your existing dues, how well or badly have you repaid it, credit card outstanding repayment and more. Thus, always ensure to have a healthy Credit Score while applying for a housing loan.
- Know the Home Loan Interest Rates Type
The type of Home Loan interest rates that you will select for a Home Loan repayment will affect your monthly EMIs. Thus, be sure that you are aware of the difference between a fixed and a floating Home Loan interest rates. A floating interest rate may have a lower or higher EMIs which may fluctuate as per the market conditions. On the other hand, fixed interest rate option means paying fixed EMIs. Thus, if you don’t want to take a risk, opt for fixed one, or else opt for a floating rate.
- The Home Loan Duration Matters
You should know your Home Loan EMI is measured on the loan amount required, Home Loan interest rates and loan tenor. Hence, the final monthly EMI amount gets decided as per your selected Housing Loan tenor. If you opt for a longer tenor, you will pay smaller EMIs but pay more interest rate, and there will be a liability on your head for long. If you select a shorter loan duration, although your EMI will go up, the interest will go down, and you will be able to pay the loan much earlier.
- Read the Fine Prints at Least Once
Some Home Loan borrowers don’t want to take the pain of going through the entire terms and conditions of the lenders and regret later. Thus, before signing on the dotted lines, ensure that you submit the documents as per the terms and negotiations earlier agreed upon.
The Bottom Line
Be it a Housing Loan for lawyers to anyone else, knowing the discussed aspects will help all to be fully confident before applying for a Housing Loan. Now that you are ready, you can apply for a Home Loan online!