How to choose housing loan?

In today's scenario, a floating rate interest would be better, because interest rates are likely to go down in the short term. However, in choosing a housing loan, it is more important to establish that the interest is calculated on monthly rest (many HFCs fool customers by quoting a flat rate or an Annual rest rate) and there are no penalties or limitations on partial or full pre-payment or transfer of loan. This will enable one to switch loans to other lenders if they get a better term in future. One should always exercise the partial pre-payment facility and put in any surplus money they might have in the loan account from time to time. You will be surprised how much difference it makes to the final total pay-out, if pre-payment is practised on a regular basis, specially during the first stages of the loan.

Would like to bifurcate the important things one should care about while considering a house and housing loan

1. Property itself---- The most important thing is the choice of property. 

1A. Title of the property should be clear. Proper sanction plans approved from the authority (like BBMP/BDA in Bangalore).

1B. The value of property should be evaluated in detail.

1C. The resale value should be thoroughly considered (as you never know what contingencies may appear making you sell-You should never do a distress sale with losses).

1D. The facilities/utilities that the seller has proposed---Clubhouse/elevators/power back-up.

1E. The reputation of the builder/developer for apartment/layouts. The reputation of the seller in case of a plot/land.

2. The finance terms (housing loan)

2A. The terms of finance- interest rate (floating/fixed/mixed), how the floating rate will fluctuate.

2B. Loan to value (LTV) and your margin. Check out what all is considered in calculation of the LTV- car parking/electricity board deposit/etc.

2C. Pre-closure and prepayment charges/penalty, if applicable. Switch-over fees for floating to fixed rate and vice versa.

2D. Customer service- Should be customer friendly instead of you running around to get Interest certificates/statements etc. This is esp important if your job is transferable. Some financiers provide these facilities on internet. 

2E. PL READ THE FINE PRINT of loan agreements carefully.

Flaoting rate would be better option. Though it hurts in the risisng rate regime, if reduces burden during interest rate easing out.

I would opt for fixed rate because once taken balance is constant for every month and one need not bother about the market outside and new RBi rules also. 

Due to recent economic slowdown people who have taken floating rate have benefited. Otherwise ??

Anyways there is no clarity from the RBI when it comes giving credit/banking sector. Something or the other keeps changing always.