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Truths About Home Loan Transfer You Never Realized
Total Articles: 291
There are so many home loan transfer offers available in the market today. So, it is so easy for the existing home loan borrowers to consider a tempting home loan offer. But, hold your horses. It is not easy or quick. It almost takes some amount of time, research and resources as it takes for any housing loan. But, you need to know few more facts about home loan balance transfer offers. They are rather unique facts you need to know before you take a jump.
Lower interest rates are not enough
For most borrowers, “lower interest rates” is the biggest attraction. Most borrowers do few home loan calculations to discover that they will save considerable funds with these home loan rates. But, it is not that simple. You will need to get an NOC and sign a new housing loan agreement. So, you incur all the applicable expenses for successful completion of the process. For example, processing charges, legal fees, stamp duty, etc. Some housing finance companies in India include transfer with zero or minimal processing charges. But, at the end of the day, profitability of the home loan transfer is not guaranteed. You need to conduct your own home loan calculations to ensure that you have a fair deal. Profitability is the key. Figure that out before considering new home loan offer.
Your current credit score may harm your chances
You must meet the home loan eligibility criteria of a new lender. But, more importantly, you will need to meet their credit score and credit history criteria. Any unpaid bills and pending EMIs of other loans can damage your credit substantially. Therefore, you need to know if you are financially ready to meet loan criteria and incur these expenses. Home loan balance transfer can be much easier than taking housing loan for the first time. But, if you have any additional loans and expenses, it can be a real challenge.
NOC is not oh-so-obvious
Each borrower, along with other home loan documents, will need an NOC from current housing finance organization. It is not a quickly accessible document. First of all, any borrower, who missed home loan EMI, will not receive it. A lender is completely within his rights to do so as per the terms and conditions of home loan. So, try to get your NOC. You will discover the potential barriers standing in your way. You will need to consider them before making concrete plans to jump off the ship.
Home loan balance transfer can be easier. But, you need to get all your ducks in the row before submitting house loan application. A smart borrower will understand these truths ahead of time and use them to his/her advantage when the time comes.
Author Bio :
Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the home loan transfer sector.
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