Wanting to live in Kochi is understandable – it is the most developed and cosmopolitan city in Kerala, after all. If you’re looking for tips for buying a flat in Kochi, you have come to the right place. Buying a home is not a simple decision; owning a home is an emotional sentiment, and also necessitates a large financial investment. Therefore, it is not a decision you should make lightly. Here are the chief Things to consider while purchasing flats In Kochi
- What kind of flat do you want to buy
- Which location is ideal
- The builder’s reputation with regard to quality, punctuality, integrity, etc
- The budget – how much are you willing to spend on the flat?
The last point is often the most critical one for the majority of home buyers. There are many ways in which you can arrange for funds. You can start saving from an early age and use that money, borrow from parents or other family, and apply for a housing loan. When you apply, you can list your spouse or parent under the age of 70 as a co-borrower.
Remember, there are several lenders with a number of housing loan products. So when you have to select from among them, make sure to compare things like reviews from other customers (you can also ask in your circle if anyone has taken housing loans recently), interest rate, tenure, repayment options, processing fees, prepayment fines, options for repayment, and so on. It’s a good idea to have information on these points from a few lenders and make comparisons, as part of your real estate investment strategies in Kochi. It will help you make the right decision for you.
However, you must remember that the terms you are offered will depend to a good extent, on your creditworthiness, expressed as a credit score.
What is a Credit Score?
This is a 3-digit number, ranging from 100 to 900 that indicates your creditworthiness; the higher your credit score, the better. It shows that you don’t pose a high risk to the lender. This score takes into consideration factors like how many credit cards you use, what percentage of credit limit is used, the length of your credit history, how many loans you have ongoing, and whether you have been making payments on time, etc. The prominent credit rating agencies in India are CIBIL, Equifax, and Experian.
To avail of a housing loan, you need a minimum credit score of 725. You may still be able to get a loan with a lower score, but you may have to pay a higher rate of interest, and only be offered a shorter tenure, etc. If your credit score is low, you have to work on it.
Tips to Increase Credit Score
Timely Repayment
Pay your loan instalments on time. For ECS payments, ensure that your account is sufficiently funded. When you miss or delay a payment, it adversely affects your credit score.
Limit Credit Card Use
Use credit cards judiciously and try to only use around 50 – 60% of the limit on your card. High credit card usage impacts your score negatively; if you have to use credit cards for big payments, try to pay it off in full so that you don’t have a large outstanding amount at the end of the billing cycle. Try to get cards with a high credit limit so that your usage percentage can stay low. Also, pay off the entire amount on or before the due date to avoid heavy interest charges and negative credit scores.
Fewer Loans are Better
When multiple EMIs exist against your name, credit rating agencies flag you as a risky borrower, unless you have an income that is several times more than the total of your EMIs. Pay off one loan before applying for another. Try to have as few loans as possible when you apply for housing loans.
Conclusion
With a high credit score, you can have your pick of housing loans. Varma Homes can connect you to the best builders and help you choose the right product, as we have built an excellent network over the past years. With our RERA-approved projects, getting good loans is now fairly simple.
Embark on a journey to unparalleled luxury with Varma Homes. Our collection of Luxury Flats in Kochi offers you an exclusive lifestyle with world-class amenities and breathtaking views. Schedule a visit or request more information today to see why Varma Homes is the perfect choice for your new exquisite living space. Don’t miss the opportunity to elevate your life. Contact us now!
FAQ’s
What is a credit score and why is it important when buying a flat in Kochi?
A credit score is a three-digit number ranging from 100 to 900 that lenders use to evaluate your creditworthiness. In Kochi, a higher credit score signifies a lower risk for lenders, making it crucial when applying for a housing loan. A good score can secure you better interest rates and more favourable loan terms, enhancing your ability to purchase your dream flat in this cosmopolitan city.
How can I improve my credit score to qualify for better housing loan terms in Kochi?
To improve your credit score, start by consistently paying your loan instalments and credit card bills on time. Aim to use only about 50-60% of your credit card limit and avoid having multiple loans at once. These steps show lenders that you are a responsible borrower, thereby potentially improving the loan terms offered to you in Kochi.
What minimum credit score is required for housing loans in Kochi, and what if my score is lower?
Most lenders in Kochi require a minimum credit score of 725 for housing loans. If your score is below this threshold, you may still obtain a loan but with higher interest rates or shorter loan terms. To improve your chances, focus on enhancing your credit score by managing existing debts responsibly and limiting new loan applications until your financial health improves.
Leave a Reply