Opting for a housing loan is indeed a big deal for everyone, irrespective of which economic class you belong to. Many loan aspirants invest a lot of time scrolling through loan lender’s websites to find the ideal loan product. But it might seem absurd to find how applicants can make such a mistake when finding the lowest home loan interest rate is their ultimate motto!

It is indeed crucial to choose the right home loan interest rate as it will affect your financial management, every month. Hence you can refer some of these common mistakes that most applicants make and try your best to avoid them, and they are here as follows:

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Forget to use their loan credibility to the full extent!

Each housing loan lender suggests certain loan quotes to an applicant appropriate to their financial withstanding. In this process, their current monthly income and credit history will be judged to know the loan repaying capability. And following are some ways you can increase chances to improve your loan credibility:

  • Include rent from the property you own, if any
  • The profit you receive from share trading.
  • Include spouse as a co-borrower
  • Clear each loan you’ve borrowed and been unable to pay off.
  • Follow a regular EMI cycle on each loan you’ve borrower so far.

All these factors will eventually give you the benefit to get lower home loan interest rate and other loan quotes.

Fail to choose right tenure option!

A good thing about housing loans is that each lender provides ample number of repayment tenure choices. And most applicants prefer choosing longer repayment time to reduce home loan interest rate and make EMIs comfortable to pay. But the idea is to pick right quotes while applying for a loan and it is not necessary that longer tenures will ensure you are following in right.

While paying your monthly installments, you also pay interest rate while repaying the principal amount. So when you pay installments for a longer period of time, you might end up pay extra interest payment. Hence, it is wise to calculate and choose the right tenure period when you applying for the loan. You can use home loan EMI calculator to compare various tenure options available in front of you.

Prefer paying lower down payments!

Principally, home loan lender will only allow 80% of the loan amount of the property value. And the rest amount needs to be arranged by the applicant! This might add stress to determination but paying a higher down payment has its benefits. When you arrange a higher down payment, you would eventually need less loan amount to buy the property proposition. And since the Apnapaisa home loan interest rate is charged as per the loan amount you borrow, you have some relief from that side.

Choosing a right home loan interest rate isn’t that rocket science if you take the decision right! Keep in mind, one miscalculation or misjudgment while applying for a home loan might put you under loan burden and eventually cost you a lot.

These were a few kinds of mistakes that the applicants makes while choosing the home loan interest rate!