Buying a new home requires a significant investment. For most people, it is nearly impossible to buy a house entirely from their savings, and they inevitably rely on getting a home loan. Today, thanks to the rapid advancement of digital technology, availing a home loan has become easier than ever before. You can apply for a digital home loan, also known as instant home loan, from the comfort of your home with just a click of a few buttons.
However, before borrowing a large sum, you must explore the different loan options available to you and choose the one that best suits your needs. In this write-up, we discuss a few important things you must keep in mind while getting an instant home loan online.
- Secure your application
While digital technology has been a boon for all, it also has a flip-side. It has given rise to several online frauds. Over the years, fraudulent activities have increased significantly, and several people have become soft victims of such frauds.
So, when you apply for a home loan online, you can be extremely careful. Today, many lenders are wary of these problems and have the best security system in place to facilitate safe transactions for the customers. It is better to apply for a loan with only a reputed lender.
Make sure that the lender’s website or mobile application secures your personal and other details through end-to-end encryption and OTP-based login.
- Compare the interest rate
Whether you are applying for a home loan online or offline, the interest rate is one of the important factors to consider as it affects the EMI and affordability. Compare the rate of interest levied by different lenders and choose the one that offers the loan at the most competitive rate.
Also, you must be aware of the type of interest charged. Generally, lenders offer home loans at a fixed interest rate or floating interest rate. Experts suggest that the latter option is a few points lower than fixed interest home loans.
- Do your homework well
While comparing the interest rate is critical, it is not the only factor you must consider. When you apply for a digital home loan, you must do your research well about the lender-specific home loan eligibility requirements, processing fees, flexibility offered in repayment, loan tenure and other terms and conditions before making the final decision.
Also, it is advisable to check if the property that you want to buy is pre-approved by any financial institution. If you apply for a loan with such a lender, you can get your loan approved and processed faster. Also, since the lender may have verified the property-related documents beforehand, you can be certain that the property has a clear title and is free from any legal issues.
- Cross verify
It is always a good idea to double-check with the lender to know if they can offer human help or expert advice in person during the application process if needed. If things don’t go as planned, such a facility can be useful in getting your queries resolved and proceeding with the loan process.
There is no doubt that the advent of digital home loans has made getting the loan easier and faster. It has also simplified the whole process and has introduced complete transparency in the proceedings. However, you must be careful and consider the above tips to enjoy a smooth and hassle-free digital home loan borrowing experience.