5 Common Problems faced by First-time Home Loan Borrowers
The road to your dream home isn’t a bed of roses. Baffling jargon, a never-ending list of applications to wade through, incessant anxiety, and the hurdles are many before you can step into your dream home.
But, no worries! Read on to be aware of the major problems that you face when you apply for a home loan and how best to avoid them.
- Overcoming the Initial Rejection Syndrome
A huge majority of the applications for a home loan never cross even the first stage of verification due to major discrepancies in the information provided by you and the bank’s evaluation process. For instance, if you are either above or below the age limit set by the bank, your application is sure to be rejected.
The best way to avoid this is by doing thorough research on the bank’s requirements and ensuring that you apply only to the bank that matches your profile. Also, have the required documents handy to avoid any errors in the details.
- The Non-Refundable Processing Fee Trap
Banks usually charge around 0.25% to 1% processing fee for easy home loans. This fee is non-refundable even if your application meets with failure. However, some banks promise that they won’t charge any processing fee if your application is rejected.
Instead, of just relying on the bank officer’s words, it’s better to get it in writing if you want to enforce this clause.
- Making the bank Believe in You
Irrespective of your past credit history and other credentials, banks sanction your home loan only if they believe that you’ll repay it without any trouble. So, it’s in your hand to make the factors work in your favor. Credit score, monthly income, place of employment are some of the factors that influence your bank’s decision.
If you feel that any of these factors may work against you, you can opt to include a co-applicant in your application to improve your prospects.
- The Interest Rate Conundrum
One of the biggest decisions you’ll have to make when you get a home loan https://forum.antworksmoney.com/ is to decide if you wish to choose a fixed interest rate or a floating rate. The best way to avoid tricky situations is to read the entire rules and regulations carefully before choosing one. Also, being aware of past interest trends will help you make an informed decision.
- Getting the Title Deeds and other Documents in the Proper Format
This is a big problem especially for first-time borrowers of online home loans. The title deeds and No Objection Certificate (NOC) documents have to be specified in the format specified by the bank. Do your homework and produce the right documents in the right format within the stipulated time period.
Don’t be overwhelmed
The above problems are pretty common when you apply for home loan. But, they can be avoided if you do proper research and equip yourself with the required documents and follow the right procedure. One easy hack to make your loan process simple is to compare loans on www.antworksmoney.com and find your eligibility. The process to apply for the best home loan here is simple and seamless!
