Home loan guide: Mistakes to be avoided

Harinee RavimaranSulekha.comHome buying has always been a long term process for an individual. There are always dos as well as don’ts in any process especially when it comes to owning a house or property; the buyer ought to be extra cautious. Buying a home is a lifetime decision for many of people and it would be one of the biggest assets one could create. It is human tendency to forget about the don’ts when there are dos in the checklist. During the home loan availing process, pay extra attention to the points stated in this article.Try avoiding the following mistakes and chaotic situations while considering a home loan:Have you checked the credit score?Before you start the process of home loan application, ensure that you are well aware about the details such as personalized credit score or CIBIL (India’s leading credit rating agency) score. It is more advisable to pull out the personalized score on a regular basis to be clear if it is free from identity thefts.CHECK ! Have an offline checkDiscuss the whole process as guided by the bank with your friends or colleagues or relatives about the scheme as well the bank. Enquire before you proceed. Check with them about the reasons behind their preference towards that particular bank and loan scheme. Do not stick to a particular bank. Research about various options suitable to your budget. Check out the offers each bank is offering and also about their services in order to cut down little expenses such as legal charges, foreclosure charges and processing fee.Last minute work doesn’t helpIt is advisable to concentrate more on the home loan proceedings six months prior to the property search. Do not prefer opting for personal loans and credit cards because your loan application may get rejected if your mortgage lender finds more confusion in your CIBIL credit report.Pre-approval left unconsideredPre-approved loans are a benefit offered by the bank to you on the basis of the relationship that you share with the bank. This is more beneficial in terms of saving time on loan processing. When you have a proper relationship with the bank, the bank is aware of your history so that the processing becomes easier to them.Loan overleveragedJust because the bank is offering higher value loan, do not opt for it. Look into the fact- how affordable it is to you? So, ensure if you could pay back the respective monthly EMI. Do not blindly go a high EMI loans. The simple and best tip for the buyer is to look out for avenues to increase the EMI and reduce the tenure of the loan in order to save money on interest.Know the clauses wellHave you loan documents verified by a legal consultant. Before signing the loan papers, make sure that you are aware about each clause mentioned in the application form. You can very well get in touch with the bank executives if you are unable to get the terms right.Therefore, have a secured home buying experience by avoiding these common mistakes and see to that you make an informed decision while opting for a home loan.