What are the things that people must be aware of regarding the home loan?
First thing that anybody must be aware of should be the maximum amount of loan that one can avail.
Most of the banks approve a loan for 80% of the property value. However, the exact loan amount depends on the borrower’s eligibility for the home loan. To be eligible to take a home loan, you must have a good credit history. A poor credit history will lead to a poor credit score and a low credit score or a credit fraud can lead to the rejection of the home loan application. Therefore, credit scores, credit history and credit activity have a huge effect on home loan approvals. In addition to higher credit score requirements, several missed payments, frequent lateness, and other derogatory credit information can also lead to rejection of the home loan application. Make payments for your bills on time regularly, lower your credit utilization, and keep your credit report in healthy shape. Cleaning up your credit history beforehand and fixing errors on your credit report are key to keeping up a good credit score. Also, stability of job is crucial. Do not change your job if you have applied for a home loan. Any changes to your employment or income status can also lead to rejection of your application or delay process. Lastly, you have to find out the best home loan deal for you. Approaching numerous banks and comparing their interest rates can be a very cumbersome process..