One should avoid these common myths while looking for home loans options!
It is very crucial to find a home loan product that meets all your requirements when you want to buy the dream home. And indeed most of the loan aspirants understand the seriousness of the situation and invest extensive time in evaluating every home loan availed in the market. But still, some people make a very obvious mistake in the decision making, which can cost them a lot of they carry on and apply for a home loan. Frankly stating, most of these blind myths could be avoided if one just read and understand the home loans better.
Indeed, home loans are a bit tricky to understand in the first sitting and the advertisements can also trick you into believing that a loan product offered to you is beneficial. Hence it is wise to go through following examples of home loan myth that we’ve seen people committing and we hope you don’t follow their paths.
Longer the tenure period, beneficial it would be!
This is one of the common assumptions most loan aspirants have as apnapaisa home loans usually come with longer tenure up to 15-20 years, depending on the loan lender you choose. Most loan aspirant chooses such tenure period as the EMIs became more manageable for adjusting with a monthly budget. And since the rate of interest became less in such scenario, most people would just blindly choose the longest tenure. But the idea is to choose the right tenure so that you don’t have to pay extra on interest payment. If you choose an extended tenure although shorter one was ideal, you have to keep paying EMIs and pay extra interest payment on the principal amount.
Higher CIBIL score means quick approval!
Beneficial indeed, but doesn’t speed up the processing speed by any mean! A higher credit score can be beneficial for you as it can give you ground to negotiate your borrowing limit and the loan lender could even reduce the rate of interest on the loan product. A stronger credit score means the applicant is financially capable of any loan taken and hence the loan lenders can also such benefit to the applicant. But the approval of home loans isn’t just dependent on a credit score only there are other factors too. Such factors like your age, income, debt to income ratio, job and employer’s profile etc.
Pre-approved home loans mean guaranteed loan approval!
Indeed it is a privilege offered by the banks to their bright customers who have a stronger credit history and financial withstanding. It is also true that a person got considered for a pre-approved home loan will be asked to for minimal documentation as the bank would already have most of the documents. And since the rate of interest offered on such loans is favorable, most of those customers apply for a home loan even though they don’t need it. But the fact still remains the same; the approval of your application will be based on the documents you submit.
Home loans with the lowest rate of interest are better!
Many loan aspirants focus and begin shortlisting home loans with the lowest interest rates in the market. One might feel he nailed the product search and found the perfect home loan product, but is as pointless as following a cliché of ‘judging a book by its cover!’ there are other factors like credit score, terms and conditions, maximum tenure availed, repayment options, modes of payment and much other need to mind before you opt for a home loan.
