Buying a home is not less than a lifetime achievement for many of us. Especially when it comes to the first house. Buying a house is not an easy task. The process of buying a house is such that it is not taught in schools. This is the reason why most Indian customers do not know, they make a mistake in buying a house. Therefore every person buying a house in India should read a lot so that he does not make mistakes while taking a home loan.
But even if we try to buy a house and read about home loans, we still make mistakes. Let us tell you that people who buy homes for the first time usually make mistakes.
Low Down Payment:
The down payment of the house is that which is not covered in the home loan. Home loans cover a maximum of 80 percent of the project cost, while the remaining 20 percent has to be paid by the customer. This 20 percent amount is called home loan down payment. 20 percent is the minimum amount that the buyer pays. But a person can make as much down payment as he wants. It is advised that the down payment should be paid more. The more you pay the down payment of the home loan, the higher will be the savings on interest because the amount you have paid in the down payment will not attract interest.
Excessive loan: Everyone dreams of living in a big and luxurious house. Do not put excessive financial burden on yourself to fulfill this dream. Many home customers take home loans more than their repaying capacity. In such cases, you have to compromise your daily needs and in many cases you are unable to repay the loan.
No research on lenders: Today, the number of home loan lenders is very high. Therefore, before applying for a home loan, you should compare the loan offers of various lenders, so that the best can be chosen. Choosing the first lender as the best, is one of the biggest mistakes that customers make.
Not buying the right loan coverage: Just like we buy insurance for our home, car and health, we should also take for a home loan. The term of home loan is long. So do not take the risk of not taking home loan insurance. Home loan insurance helps the family if the borrower encounters some kind of tragedy, illness, death, accident or other situation which makes him unable to pay EMI.
Not enough information about the builder: Before finalizing the deal with any builder, you should check the record of that builder. It is better to wait a year or two than buying a house from a non-professional builder. You can face difficulties at every step by buying a house from the wrong builder.
Contract signing without legal advice: Sign any document only with legal advice. Hire a lawyer to check property documents. Only then reach any final result regarding the property. Many of the words used in property documents are technical, so only the expert of that area can tell them better. So let an expert do the work about that.
Choosing the wrong loan: If we have talked about home loan, then there are many types of this too. Banks offer options like floating interest rate, fixed interest rate, semi fixed interest rate, home loan with overdraft benefits, incremental EMI home loan. Before choosing any of these, understand their advantages and disadvantages.
Long-term loan: The term of the home loan can be up to 30 years. The longer the home loan period, the lower the EMI. Hence loan burden will be reduced. But if you calculate the total expenditure, you will find that you are paying double or three times more on the original amount. If you want the loan amount to be less, then choose a shorter loan period.
Non-Eligibility Check: The loan is sanctioned only on the basis of the eligibility of the loan applicant. To get a home loan, the applicant has to meet all the qualifications of the lender. If you are not eligible and apply for a home loan, then your application will be rejected. Due to the application being rejected, your other loan applications will be rejected in future also. Therefore, before applying the loan, check the eligibility.
Not to consider all costs: Buying a house does not mean that you have given a certain amount to the builder and it is over. There are many other expenses as well, such as registration charges, stamp duty charges, brokerage (if you have booked through a broker), attorney’s fees, home loan processing fees, etc. When you calculate the property’s price, consider these expenses as well.
Non-receipt of list of original documents submitted: To get a home loan, you have to submit the original documents of the property to the lender. After the loan is fully repaid, the lender will return all the documents of the property and you will become the owner of the house. But till then, the documents of the property will remain with the lender. After submitting the documents, do not forget to take the acknowledgment, so that in an unpleasant situation you have proof that the documents are with the lender.