Made your decision to buy your dream house? If yes, then it’s a high probability you are applying for a home loan. And applying for a house loan is one thing and returning it with a full interest amount is another. You will need to make sure you are analyzing all options and are getting an affordable loan opportunity. Also, while applying for a home loan you can make certain risky mistakes that must be avoided. That’s why we are here to reveal what they are.
These Are The 4 Most Riskful Mistakes You Can Make While Applying For A Home Loan:
Not Maintaining A High Credit Score Before Applying
Lenders always consider your creditworthiness to trust you with a home loan. Your credit score denotes your credit-returning capability. So, applicants with a credit of 750 or above are more likely to get loan approval.
Also, the majority of lenders always consider approving a home loan with interest rates that vary based on one’s credit score. This means, if you have a high credit rating or CIBIL score then they can offer you a low-interest rate home loan.
Not Considering Saving A Downpayment
You can only get a home loan for a maximum of 90 percent of the value of the property you are buying. The remaining amount must be paid by you as a down payment. So, not considering saving a large down payment in your life can be a risky mistake. Every family or individual who desires to buy a house via a home loan must save a large corpus as a downpayment ready. This rule is beneficial for all applicants because the interest is only applicable to the amount you lend from the bank. So, suppose you paid the 20 percent from your savings as a downpay and took a loan for the remaining 80 percent of your property value, the interest rate will be applicable only on the remaining 80 percent.
Not Comparing Multiple Lenders
In the financial supermarket, there are several lending shops from which you can apply for a loan. Everyone offers the loan with the same procedure but with different features. These features can deeply impact your repayment period. Because if you do not compare the loan offer between multiple lenders then you will end up paying high-interest rates, expensive processing fees, facing strict repayment procedures, and more.
Overestimating How Much EMI Amount You Can Pay
A home Loan is the type of financial product that makes you a lender’s customer for half of your lifespan. EMIs can last for up to 20 or more years. So, don’t overestimate yourself when it comes to repaying the EMIs or loan installments. Don’t opt for high EMI amounts, always choose the adequate ones which are easy to pay even at a point in life when you are very low financially.
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