Some silly mistakes people make while shortlisting the home loans, which are worth avoiding!
Home loans are indeed one of the crucial loan products a person could ever opt for! The loan amount lent by the lender is huge; the period to repay the loan is usually longer and takes at least a decade to completely free from the loan burden. Although the interest rates on housing loans are reasonable and affordable enough to make the repayment smooth. It is quite simple to understand the basic features of home loan product, yet loan aspirants make silly mistakes while applying for one!
Although we wouldn’t blame you blatantly as general assumptions about home loan are conducive to make us believe in that way. But this wouldn’t give you are a reason to mistake when your money is bet on it. So before you make your final decision, note you are not making the following mistakes! Just to be on the safer side!
Being prey to advertising:
The advertisements for the home loans option are literally everywhere whether you turn on your TV, use your smartphone, listen to a radio station or even when you roam around the street! These ads are a target to induce your strong will to your own house basically trying to sell their home loan products. We are not saying every loan lender that put up the advertisement is offering you a dubious product, but it is not fair to make such a big decision based on mere advertisements. The facts still remain the same, the loan lender will offer loan quotes on the basis of your financial withstanding, the collateral security you submit and loan credibility. So when you go out and apply for a housing loan, the quotes might not be as favorable as the ad made you feel.
Making everything about interest rates:
The rate of interest on housing loan does really play a significant role but making everything about it wouldn’t make sense! Home loans are pretty intricate finance product that needs to be understood thoroughly before applying for it. Other factors like processing fees, documentation work, planning EMIs over tenure period, know all the prepayment options and benefits, conditions to qualify for tax rebates and many more. Even you have to choose between fixed rates to floating interest rate while choosing the right rate of interest. If you chose one factor incorrectly or poorly estimating any of these factors might cost you loan burden in long run!
Being too much of an opportunist!
Although housing loan lender would approve the loan amount as per the property value and that too only 80% of it generally. But some geniuses think to change their decision about the property they thought to buy at first and opt for a pricey proposition. Ambition-wise it is positive, but such a decision can make stand at the negative side as you have to repay the inflated loan amount. Meanwhile hoping the loan lender would offer you appropriate tenure choices on home loans option so you can repay that loaned fund.
Undermining your credibility
Most loan lending entities offer benefit to those who have good financial credibility and a greater credit score. And even home loans aren’t any exception to it as you can get a reduction on interest rates offered to you. Indeed it also adds a considerable weight on your loan application and reduces the chances of rejection by the loan lender.