Now that you have finally decided to choose for Housing Finance, you must be wary of certain factors to get through the procedure easily. Since taking a loan demands careful analysis and planning, you cannot afford to commit any mistake. If it is the first time for you, make sure you go through this post to know four common mistakes that you must avoid.
Undoubtedly, the dream of owning a house can take you on the path of a home loan. Before taking the plunge, preparing and investigating become extremely important as you are going to commit a longer period to the EMIs.
Usually, while in a rush to avail the loan, people tend to commit some common mistakes, which turn out to be disadvantageous to them in the future. So, if you are also going to take up a home loan, below-listed are some of the mistakes that you must avoid at any cost.
- Not Conducting A Thorough Research:
Over the period, Housing Finance has become one of the important things among Indians. That is the reason, not every other person puts in enough efforts to research the available options. Not from one, but it is advisable to check out the offers provided by a couple of lenders. Check out the interest rates, charges, fees, services, and some other important factors of the lender before making your choice.
- Not Arranging the Down payment:
If you are purchasing a property which is under construction, it is obvious to assume that paying the down payment would be easier. Since the lender is providing the rest of the debt, you may think that there is nothing to sweat about the down payment. However, the fact that you may not know is that you would have to put the down payment in front of the lender only then the rest of the amount will get disbursed.
- Only Concentrating on Interest Rates:
Usually, people think that the only important factor in a home loan is the interest rate. While it may be true, you cannot neglect other essential aspects as well. Apart from the interest rate, you must also keep a tab on the type of interest; whether it should be fixed or floating. Are there any hidden costs? What will be the tenure of the loan? How about the pre-closure penalties? Are there any processing and legal fees?
- Borrowing More Than Required:
This is one of the common mistakes that can land you in grave troubles in the future. If your income does not permit a huge amount, you should never get it disbursed as it can have an adverse impact on your entire financial structure altogether. Although lenders consider your income and expenses before granting the loan, it is also advisable to quote an exact amount. So, borrow only the amount that you require.
So now, if you have already decided your dream abode and are planning to get the loan, keep these things in mind. Research as much as you can and try not to commit any mistake. Compare the loans before selecting the one.