Thursday, June 4, 2009

Choosing a Home Loan Provider: Things to Consider

ICICI Bank brings you Customer Education Series. And as a part of this, it has published the following article in the Economic Times News Paper.

Things to Consider when you choose a Home Loan Provider -

There is more to a home loan than just interest rate.

Compare the loan-to-value (LTV) ratio -

LTV signifies the maximum home loan amount that a person is eligible for on the total cost of a property. So an LTV of 80% means that you can get a loan of maximum 80% of the value of the property. Go for the loan that suits your needs best.

Ensure Security of your property -

It is important that your property be legally and technically approved. Choose a provider who offfers legal and technical appraisal of your chosen property.

Evaluate your loan options -

- Loan Plans – Choose from fixed, floating, part-fixed and part floating rate of interest.

- Fees – The applicable fees for processing, pre-payment, foreclosure…etc…

- Other Services – These can include free proposal accident insurance cover, doorstep service and assistance in finalizing of a property.

Tip of the Day -

Ensure that your shortlisted property has been approved by the home-loan provider you finally choose. You will then be able to get the loan funds quicker.

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