Here are five points which you should keep in mind while applying for a home loan in India─

You should never blindly believe in whatever your broker or loan agent suggests you. You should definitely do research at your end to get all the information and clearing all the confusions you are having, if any. You must try to avoid loan agent’s help and visit the bank by your own to get all the essential details about the loan procedure and amount. It is true that it will be time consuming but it can help your in remaining tension-free in future.

Before you plan to own a house and apply for a home loan, you should try to keep a tab over your expenditures. This will help in increasing your savings with which you can repay your EMIs easily in future. Besides this, this will also help you in saving a good amount for down payment of your house. If you are able to pay a good amount of money as down payment amount, it will decrease you EMI amount as well as loan tenure.

You should clarify what is a floating and fixed loan rate directly from the bank from which you are planning to apply for a home loan. Get all the details of the benefits and disadvantages associated with both the types. Floating interest rate is based in the base amount which is linked with the market whereas the interest rate of fixed one remains fixed through the tenure as mentioned in the loan agreement. Though floating interest rate is considered cheaper than the other one, you must select the one which suits you and your budget.

This is the most important factor upon which approval of your loan application depends. To get loan at most attractive and reasonable interest rates, one needs to have a score of 750 plus.

Most loan applications are rejected only because of low CIBIL scores. All the banks consider it very seriously.

You should always try to clarify if you will need to pay anything extra while foreclosing your loan. For this, you need to study and compare loan proposals of two to three banks to finalize the one for you.

You should always go for short-term loans. It will help avoid stress. Apart from this, it will also lower your repayment amount. Mostly, with long tenure loans, you end up paying more that the loan amount you had applied for. However, you should analyse your loan repayment capability before fixing your loan tenure.

These are some of the factors which will help you in finding the best home loan policy to buy your dream home. An additional thing you can do to manage your expenditures properly is to repay your loan amount before the given time period with a little study and research.