No matter what your age or salary bracket is, longing for living in a luxurious home is always a desire. It gives one a sense of achievement. Especially when that dream is achieved at a young age. From saving big each month to cutting down on expenses, you might give up on so many things while planning for a home. The thought of buying a home becomes a part of your everyday life and you end up doing everything it takes to get closer to your dream home, with sheer joy. Happiness doesn’t arrive only after moving to a new home, it arrives the moment you take that decision.
Now, when you are finally there where all your hard-work and dedication has come together to bless you with a home of your own and you are about to sign those Home Loan Agreement papers, you need to take a deep breath and wait right there. Yes, wait. You definitely would have done all the R&Ds possible online and offline, before and while applying for a home loan, but there’s more to the finale when you are just a few steps away from getting a new residential address and that is – reading important clauses on your home loan agreement.
When you are in the moment which you were eagerly waiting for, you tend to forget to take a few important calls while reading the home loan agreement. It’s a legal document that holds the terms and conditions of the loan applied for. It’s extremely crucial to read between the lines before signing that home loan document. Though Home Loan websites are loaded with information, it might still put light on the generic information, most certainly the Dos and the Don’ts. A clear picture is on the loan agreement paper. From hidden charges to not so openly talked about clauses, everything you need to know is mentioned between the lines. You are responsible for the decisions you make, so take your time; read the document carefully and do not hesitate to ask multiple questions to the loan officer.
The clauses range from interest rates to repayment schedules and more. Furthermore, the language used in the document seems more difficult to understand, but that shouldn’t stop you from connecting with the financial institution issuing the loan. Not reading a loan agreement from top to bottom can land you in a mess. So, it’s advised to take extra time to read the document to avoid suffering later. Here are some clauses which should be searched for inside a home loan agreement:
l Reset clause on fixed rates
l Force majeure clause
l Defining a fault
l Security covers and more.
And once everything is checked thoroughly, you are free to sign your home loan agreement. Happy ‘new home’ to you.