Individuals who are keen to purchase or construct a new home can avail a housing loan. Searching for profitable deals from a financial institution amidst the varied available options can be challenging for the loan seekers. It is thus advisable for every potential borrower to take specific steps to make an informed decision before availing a housing loan.
Things to refrain from while applying for a home loan
Individuals can avail a housing loan without dealing with any financial ambiguity by avoiding a few missteps that are mentioned below –
- An individual should select the repayment tenor of their housing loan by reflecting on their affordability and financial solvency. Borrowers opting for shorter tenor should be informed that the same leads to expensive EMIs that can unsettle your financial stability. On the other hand, longer repayment tenor leads to high overall interest amount.
- Individuals should refrain themselves from missing their EMI payments as it would negatively affect their CIBIL score, eventually rendering a bad credit history. To avoid such financial delinquencies, individuals should consider calculating EMIs before taking a housing loan and plan their finances efficiently.
- Every borrower should consider comparing the deals offered in the market before settling for the first option. One should be particular about the features like affordable interest rate, multiple repayment options and flexible tenor offered on their home loan by the financial institution.
Additional Read: Planning to Buy a House? Know the Home Loan Criteria
Apart from the above-mentioned points, individuals should also check the rate of interest offered – while floating rates change with market conditions, fixed rates remain constant throughout the tenor.
