Overpaying a Home Loan in Mumbai? Follow 5 Tips!

Mumbai is the city of dream, and stunning opportunity beckons people who are smart and hardworking to make a good living. If you live in Mumbai and dream of having your own dream home, you are not alone!

Many people think of making Mumbai their home, and for the same, they take out a Home Loan. If you thought that a Home Loan in Mumbai must be costly, then you should know that there are smart tips that can help you save huge!

Thus, if you know someone overpaying for a Home Loan in Mumbai, let’s quickly provide you with tips. You need to keep in mind to shop for a low-interest Home Loan in Mumbai.

Tip 1: Credit Score

Your credit score is the mirror of your Home Loan eligibility as it showcases your creditworthiness. It depends on your CIBIL score as to whether you would qualify for a Home Loan and at what interest rate you will repay the credit.

The concept is simple – the higher your credit score, the lower your Home Loan interest rate and if your credit score is low, you will get a higher rate of interest.

Thus, to shop for a low Home Loan interest rate, you need to ensure that you have a strong CIBIL score. A CIBIL score of around 750 or more is enough to help you grab a low Home Loan interest rate in Mumbai or elsewhere.

Tip 2: Down Payment

You will need to put down at least 20% of the total loan amount to avail the best Home Loan interest rate generally. If you put around 10% as the down payment on your Home Loan figure, you are bound to get a higher rate of interest on a Home Loan in Mumbai.

Tip 3: Employment Stability

Creditors preferably opt for borrowers with a sound and stable employment history and a steady income source. You have a good opportunity for getting a better Home Loan interest rate if the creditors think that you have a dependable job with consistent income.

If you switch jobs every six months just for the sake of availing a pay raise and want a Home Loan in Mumbai, either you won’t get a loan and even if you do, it will at a higher interest rate.

Tip 4: Negotiate

Never settle for a deal offered to you the first time. Always negotiate as you will be surprised how your EMI payouts may go down after some haggling. Even if they don’t reduce your Home Loan interest rate, try to negotiate for terms such as no penalty charges on closure and more, etc. If you have a healthy CIBIL score, your chances to negotiate for better interest rate also improves.

Tip 5: Shop Around

Just like you should not settle for an offered interest-rate, you should also make sure never to finalize the first lender. Instead, go to a third-party website and compare all offers by all lenders and then decide what suits you best. Based on your affordability and financial status, determine a plan or offer that you will be able to afford easily.

The Bottom Line

Availing a good home location in Mumbai is not an issue; the problem is getting a reasonable Home Loan interest rate. Try to deploy the pointers mentioned above to get a better deal on a Home Loan in Mumbai interest rate. All the best for your

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