Everyone has to take the help of a home loan to buy a house. But before taking a loan by getting influenced by others, it is necessary to check and understand everything yourself. Because just looking at the interest rate is not enough. There are many such secrets and details hidden in home loans, which are very important to know. So let us know which 8 things everyone should keep in mind before taking a home loan.

Dream of own house
Home is everyone's dream. If the house is expensive and we do not have that much money, then we take a loan from the bank. Banks give loans according to your credit score and salary but do not tell some things openly. In such a situation, we are telling only 8 important things which should be kept in mind at the time of loan.

1-Interest rate
The first thing is the interest rate. That is, at what rate the bank is giving you the loan, floating or fixed? Can your EMI change in the future or not? Because in floating EMI is more or less, but in fixed you do not get the opportunity to reduce EMI.

2- Monthly installment

Secondly, it is important to see for how many years the loan is being taken and whether your monthly installment (EMI) is according to your needs or not. Many times we take the installment without deciding the monthly expenses, due to which the entire budget of running the house gets spoiled.

3- All charges
The third and most important thing. Processing fee and other charges. Often banks also take some hidden charges with the loan, such as law fees, technical verification fees, and insurance fees. Therefore, these should be cleared beforehand.

4- Pre-payment and fore-closure
Fourthly, it is important to understand the rules of pre-payment and foreclosure. Some banks take additional charges on repaying the loan on time, which can be heavy on your pocket. Repaying the loan before time is called fore-closure or force closure.

5- Loan-to-Value Ratio
The fifth thing is the Loan-to-Value Ratio (LTV) i.e. how much percentage of the total value of your property will the bank give as a loan. Often it is between 75% to 90%, the rest of the amount has to be paid by you.

6- Terms and Conditions

Sixth thing, it is important to read the terms and conditions related to the loan carefully. Many times there are such clauses in the documents in which the bank gets the right over the property or it is made mandatory to take insurance. Although insurance is beneficial, but if there is no money then this option can be left out.

7- Bank Government Schemes
The seventh thing that should be seen is whether the bank is giving subsidies under government schemes like PMAY or not. If you are buying a house for the first time, then this scheme can provide a lot of relief.

8-Legal and technical clearance
Last and eighth, valid legal and technical clearance of the property. The bank checks this before giving the loan, but you should also ensure from your side that the property is legally correct, so that there is no dispute in the future. Because many times matters get stuck immediately after taking the loan and then the legal hurdles are such that you cannot do anything easily

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