While buying a home loan, people often fall prey to these myths and end up making wrong choices while selecting loan options. Here are a few home loan myths we should need to be aware of:
1. Shorter home loan tenure will always have lower interest costs then longer tenure loans, assuming that their interest rates are equal however shorter loan tenure would also attract higher EMI.
2. Home loan interest rate is just one of the several factors to be considered while choosing a lender the other important factors include LTV(loan to value) ratio, processing fee.
3. Good credit scores guarantee loan approval and each of these like age, monthly income, improper profile, job stability, location, property title, etc. plays a crucial role in assessing your credit profile failure to meet any of these criteria will lead to rejection of the home loan.
4. Penalty for pre-payment many lenders do not charge prepayment charges.
5. If it is made from the borrowers own source of the fund with home loan interest rates recording consistent decline over the last years, many home loan applicants considered a fixed rate home loan to be a better option to do away with interest rate volatility.
6. Very few lenders offer fixed rate home loans for the entire tenure.
7. The direct loan application is better while these market places and if you have multiple loan application will reduce your credit score multiple times, which might adversely impact your loan eligibility it will fetch your credit score, it is considered as a soft inquiry and hence would not impact your credit score.
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Authors Of The Question
What are the biggest myths about Home loans?
shyamginesh
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4 Year
2020-08-28T21:00:20+00:00 2020-11-11T17:59:01+00:00Comment
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