If you are looking for a home loan then you must understand one thing. Its not as easier as banking people say. It’s a tough job and you need to do a log of paper work before getting home loan. San Francisco Banking have improved a lot that you will get the amount of loan as much as you want but you will have to huge paper work then.
Factors that affect eligibility:- when you go to a bank for loan they won’t give you instantly, they will first do a full enquiry about that. Banks usually approves 40 to 50% of you salary amount. So if your salary in $1000 per month then bank will give you a loan in which you will have to pay around $500 per month. This is a rough calculation but you will come to know the exact amount and other details when you contact bank. Not only has your salary but your bank profile also decided whether you will get loan or not. If your profile is not good then bank gives you a tag of defaulter and then no bank will give you the loan. This is decided as per your response for any previous loan.
Interest rates:- when applying for the loan, you must check out the complete details about the interest rates and all. Usually there is a variation of 1 to 2% when bank differs but this 1 to 2 % will lead to pay a handsome amount at the time of paying installments. You must also confirm about the condition when you want to clear up the loan by submitting a huge amount at once. Usually there are no charges to it but there are certain banks that charge 2% as service tax for the remaining amount. So better confirm it first and check in the terms and conditions on your loan documents.
Negotiate on the interest rates:- when you apply for a loan, you have the full right to negotiate on the interest rates. This will save a lot of money of yours. At the time of negotiations the officer will also negotiate with you because he doesn’t want his bank to lose the profit. So discuss each and everything clearly beforehand. You must maintain a neat and clean record of the installments you are paying. This will save you from the confusion in future.