If most people depended only upon their monthly income and savings to buy their dream home, they would probably waste all their life waiting around in the hope of accumulating enough money for it. However, the good news is that times are-a-changing! People who aspire to live in a beautiful home without having to rely solely on their savings can now actually get the luxury of living in their dream abode! How? Thank God for home loans!

A home loan is key to turning one’s dreams into reality, wherein a seeker can borrow a sum of money from a financial institution at a predefined rate of interest and repay the amount at easy-monthly instalments without burning a hole in the pocket at one go! Anybody and everybody with a stable monthly income and a sound capability of repaying the amount of loan taken in due time can apply for a home loan against security.

Availing a home loan isn’t a big deal anymore; with the presence of so many trusted financial institutions in the market along with their premium class online loan services, applying for a home loan is no more a rocket science. Nevertheless, for some, home loan procedures tend to get cumbersome and time and again they are pitted against new challenges of picking a good deal on home loan.

How to Negotiate a Good Deal on Home Loan?

Since raising a home loan became so much simpler, the task of negotiating a good deal on home loan has become somewhat challenging. It is really upon the shoulder of a borrower to pick a scheme that not only provides a good deal on his home loan but also makes the experience very hassle-free.

Borrowers should keep the following pointers in mind in order to successfully negotiate a good deal on home loan.

• The interest rates levied on all home loans are negotiable; a borrower can also pit one lending institution against another to negotiate a comfortable home loan interest rate.
• Besides interest rate, the borrower can also negotiate other prominent charges that are associated with their choice of home loan, for example, the processing fee of a said home loan.
• Most lenders tend to be more interested only in the disbursement of the loan amount and often tend to hold on to the best interest rates for the cases that require immediate disbursement. Once the property is valued and finalised, the borrowers can approach the lender prior to the disbursement and negotiate their case further.
• One thing that the borrowers can do to lower the technical and legal cost and use the same as a benefit by bundling up their own loan requirement with that of their friends and acquaintances from the same property. This would not only act as a benefit for you but also your friend and will be in favour of your own home loan
• The borrower must provide full details of their existing borrowings and present a performance record to the lender that shows the repayment habit of the borrower in a good light. It is always a good idea to disclose all the existing borrowings beforehand as most prominent lending institutions would also investigate your borrowings and repayment records. This will further strengthen your case of negotiating the interest rates with the lender.
• The borrowers should take their time to pick their lender; they should choose a lender who not only offers a comparatively lower EMI option but is also open to negotiation when it comes to reducing the interest rates and other charges of processing the home loan.
• Settling for lengthy loan tenure may not always be the best option. Borrowers should choose a long tenure only when you don’t intend to repay before the due date.
• A borrower should go for prepayment option to repay the amount of money they have taken as a home loan before the due date only when, there is no extra charge levied by the lender on such payment.

These are the easiest ways through which any borrower can negotiate with the lender to avail a good deal on a home loan. The main agenda here is to find a lender who is not only trusted by all but also tends to be flexible towards the requirement of prospective borrower.

So, back yourself with the correct know-how and sharpen your negotiating skills. Thank us when you land up a good… great deal on your home loan in the near future!