When planning to shift from a smaller house to a bigger one or buying a brand new apartment, one must always consider applying for a home loan. Home loans are a lot more beneficial than the traditional methods of obtaining money. These days, the loan availing process has become very lucrative as compared to the olden days. However, first time borrowers may not be well aware of the loan availing process. You will have to do your research in order to understand the complexities involved with housing finances. When you begin your hunt for seeking a home loan, there will be several choices in front of you after which, it will all depend on your analytical skills as to what will be the best alternative as per your requirements.Once you make a choice, you will have to stick to it till the time you clear the repayment so make sure you take a wise decision.

· To avail a loan, you need to maintain a good credit score as this is the first factor that each and every lender notices. Thus, you should always strive to keep the credit score up to date. The credit score may vary from bank to bank so make sure that your score matches the eligibility norms of the bank that you intend to borrow from. Keep a check on your credit ratings at least six months before applying for the loan. All necessary steps should be taken for maintaining a good credit rating.

· The lender will take into consideration your income source, before sanctioning your loan. Income source of the borrower helps the bank set the maximum borrowing limit for availing the home loan amount. Thus, your source of income is one of the most vital factors in determining your eligibility. It helps the lender to understand whether the borrower is capable enough to make the repayment. So, if you do not have a good income source, keep your expectations low.

·  For availing a loan, you may have to arrange a huge down payment so that things go smoothly for the rest of the repayment tenure. It can be 20% of the entire property. Paying a higher down payment ensures that you will be paying lower interest rates afterwards. A bigger down payment inclines the deal in your favor.

· Borrow from a reliable lender to ensure complete credibility. You can track down their history and background with the help of the World Wide Web. Ask the previous borrowers who have dealt with the bank regarding their credibility and services. A bit of negotiating will also help in bringing down the interest rates. Also pay attention, to the hidden application and processing fees. Consulting an expert advisor should help you in making your decision.

So all in all everything has its own pros and cons. Same goes with a home loan as well. It is up to us to know what would be beneficial for us in the present day as well as in the years to come.