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Things You Should Know Before Changing Your Home Loan Lender

Do you think that you’re paying a home loan with more interest or your EMI is too high? If you think so, you can try transferring your home loan to the different lender. But before considering this, it’s really important for you to know some things before changing your home loan lender.

Check With Your Bank To Know If They Will Lower The Home Loan Interest Rate? Before you consider changing your home loan lender it’s better to talk with your existing bank. Some banks might reduce the interest rates or EMI with the interest of not losing customers. This option will help you in saving a lot of time, money and effort. The banks will agree to lower


the interest rates based on the past payment records and credit worthiness of the borrowers. So make sure to have a very clean payment track record of EMIs and interest.

Are You Eligible For Transferring Home Loan? There are some banks that offer loans only to salaried individuals. If you are self-employed, make sure to check with the bank to know whether they are ready to take your home loan or not. Moreover, confirm about the fee that you’ll have to pay to new banks for transferring your outstanding home loan.

How Much Will The Transfer Of Loan Cost? Banks charge transferring fee to transfer loans to other banks. Your existing, as well as the new bank will charge the loan transfer fee. Calculate the transfer free to know is it worth to transfer your home loan. There will be fewer benefits if your loan is for short period of time. So do a complete analysis before initiating the request.

Terms And Conditions Of Transfer Of Home Loan Once you change your home loan lender, you will be bound to their terms and conditions. So before changing your loan lender, ensure to go through their terms, policies, and conditions thoroughly to know that it’s going to be a long-term benefit. Some banks might need your salary account to be transferred to their bank and involve a lot of formalities and paperwork. Try avoiding such types of home loan transfer.

Make Sure There Are No Cheque Bounces It’s quite common that bank will take postdated Cheque from the loan borrowers to withdraw monthly installment. The main issue with such style of EMI is there are high chances of Cheque bounces in case of no sufficient balance in the borrower’s account. This affects the CIBIL rating of the applicant and could lead to not getting approval for new loans or loan transfers.


So take your time to decide whether you should transfer home loan or not. Always think through and consider the pros and cons of going through home loan balance transfer. If you’ve any queries related to loan for house in Stillwater MN, leave your comment here!

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Things you should know before changing your home loan lender  

Do you think that you’re paying a home loan with more interest or your EMI is too high? If you think so, you can try transferring your home...

Things you should know before changing your home loan lender  

Do you think that you’re paying a home loan with more interest or your EMI is too high? If you think so, you can try transferring your home...

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