Buying house, flat? This home loan strategy and best deal techniques will save your hard-earned money

Home Loans Deals: Owning a home is a dream for many. Most of us may not have a huge amount of money needed to buy a house and one may head to banks for the financial help. Possibly, a home loan is the largest loan taken by an individual and also that it has the longest repayment period. It is quite possible that you may have to pay almost double the amount you borrowed.

However, it comes at the cheapest rate of interest and is categories as a good loan. It's termed as a good loan because you acquire an immovable asset whose price rises with the time. However, before taking a home loan, you must compare the rate of interest of all the bank because even a margin of 0.2-0.3 per cent may help you save big over a period of say 20 or 30 years. Below are the interest rate of some of the banks:

(Interest rates are taken from deal4loans.com, the loan amount is 30 lakhs and the period has been considered for 20 years.)

Go for ready to move home
If you are thinking of buying a home, consider buying a Ready to Move property. Many housing projects get delayed for several years and you get the benefit of taking a home loan in income tax only when you get the possession.  You can get an exemption of up to Rs 1.5 lakh for the payment of principal of your home loan under section 80C of the Income Tax Act. The exemption on the payment of home loan interest is Rs 2 lakh per annum.

Homework before Home Loan
Someone's personal profile is very important for getting a home loan. This includes a person's education, occupation, number of dependents, current surveys, savings, insurance policies etc. Having more number of dependents or current liabilities means that the repayment capacity will be relatively low.

Documents and NOC
Documents like property papers and no-objection certificate (NOC) have to be submitted in the proposed format to the bank.

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Age of the borrower
Age also plays an important role in the cancellation of loan applications. A young applicant may get a longer repayment period while if one is nearing retirement, then the bank only gives a short-term loan.  

One should also keep in mind that good credit history is equally important for getting any loan. The better your credit score is, the greater is the chance of getting a loan. Another important factor for a home loan is the location of the property. Do check with the banks if they provide loan for the said location or not. If it is in the blacklist of the bank, you won't be able to get the loan.