It is possible to save a lot just by transferring your home loan to another lender. However, the process needs to be careful and well-analysed. As you are trying to get a new loan process, make sure that you understand all aspects.
The timing of the , the associated precautions, and property related aspects are important for assuring the effectiveness of the transfer.
Keeping the critical nature of the process in mind, this article presents you all the things that you need to remember at the time of transferring your home loan.
- Inspect the service quality
The service quality is exceptionally important in this process. The new lender should provide you with a better quality of service. In fact, the service quality should match the expectations that you have.
To inspect, you can look at the features provided by different options. The customer reviews and other information about the potential choices will help you make up your mind about the service quality.
- Ensure that interest rates are genuine
Sometimes loan seekers tend to get themselves into a short-term, low-interest rate policy. Avoiding this should be one of the critical priorities in your mind. So, when you see a low interest rate choice out there, make sure it is for the long term.
For that, you can consult a professional and also track the overall interest rate record of the potential lenders. This way, you can save yourself from surprise interest rates in the long run.
One important thing to know that the interest rates usually consist of two sections in these loans. The two sections are called the benchmark and the spread. You need to examine both the sections. Look at the overall change in the benchmark rates. Plus, make sure that the spread stays constant with time. Otherwise, you will face the brunt of the higher interest rate as time passes.
- The time of transferring the loan
The time matters in the process too. You need to select a perfect time to apply, so that, no disruptions from the builder can affect your goals. The overall process of loan transfer requires about 10 to 20 days. Plus, the original lender or bank might take an additional 15 to 20 days to provide the documents of the home. So, you need to make sure that your builder is not thinking about making any new demands for at least the next 60 to 70 days.
- The eligibility criteria for the new lender
The balance transfer eligibility criteria depend on various factors associated with the value of the property. And different lenders tend to take different factors into account while creating their policies. Some include certain property aspects, while others don’t. So, you need to read the documents to understand the criteria completely. Only then, you can find whether the loan options are effective for you or not.
So, now you know what to keep in mind when thinking about the transferring of home loan. Make sure that you consult your professional advisor about this too.