{"id":2004,"date":"2021-11-20T12:30:38","date_gmt":"2021-11-20T12:30:38","guid":{"rendered":"https:\/\/www.todayreels.com\/?p=2004"},"modified":"2021-11-21T14:26:52","modified_gmt":"2021-11-21T14:26:52","slug":"5-home-loan-mistakes-to-avoid-in-2021-and-beyond","status":"publish","type":"post","link":"https:\/\/www.todayreels.com\/5-home-loan-mistakes-to-avoid-in-2021-and-beyond\/","title":{"rendered":"5 Home Loan Mistakes to Avoid in 2021 and Beyond"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Want to make the most of a house loan? Then educate yourself to not make any loan-related mistakes. For instance, you&#8217;re paying heavy interest on your existing loan EMIs. Then try to transfer the home loan balance to a bank offering a lower interest rate. This can help you close the loan early.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Here are 5 other house loan mistakes to avoid this year and beyond.\u00a0<\/span><\/p>\n<h2><b>Mistake 1: Not Checking Your Credit Score and Report<\/b><\/h2>\n<p><span style=\"font-weight: 400\">When you apply for a home loan, the lender first checks your CIBIL score to ascertain your creditworthiness. If you have a good score between 700 and 900, your loan request would be approved quickly. You can also get attractive interest rates and be eligible for a large loan. But before the lending bank checks the score, assess it yourself. If the score is low, boost it by paying off due loan EMIs and credit card bills.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Check your credit report for any errors and request to have them rectified. Go for a house loan with a clean report for fast approval.\u00a0<\/span><\/p>\n<h2><b>Mistake 2: Not Choosing the Best Bank for a House Loan<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Take a house loan from a bank offering the benefits below:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A loan up to 5,00,00,000 INR and financing up to 90% of property value<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Competitive <\/span><a href=\"https:\/\/www.idfcfirstbank.com\/personal-banking\/loans\/home-loan\/home-loan-interest-rates\"><span style=\"font-weight: 400\">current home loan interest rates<\/span><\/a><span style=\"font-weight: 400\"> that are floating (lower than fixed rates) to help save money<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Long tenure of up to 30 years<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Easy eligibility criteria and minimal documentation<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A digital loan process and quick disbursals<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Home loan balance transfer from any NBFC, HFC or bank to provide access to lower interest rates<\/span><\/li>\n<\/ul>\n<h2><b>Mistake 3: Overlooking the Eligibility Criteria<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Visit the official website of the chosen bank to check the eligibility criteria for a home loan. Ensure to meet it so you get the loan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Self-employed borrowers usually must be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Aged 23-70<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A resident Indian<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Earning the required minimum amount every year<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Running a business for at least 4 years now<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Salaried applicants usually must be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Aged 21-60<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A resident\/non-resident of India<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">At least 3 years of experience in a job<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Having the required minimum annual income<\/span><\/li>\n<\/ul>\n<h2><b>Mistake 4: Not Keeping the Documents Handy<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Check the documents required to <\/span><a href=\"https:\/\/www.idfcfirstbank.com\/personal-banking\/loans\/home-loan\"><span style=\"font-weight: 400\">get a home loan<\/span><\/a><span style=\"font-weight: 400\"> and keep them handy for the application process. These may include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Valid identity, residence and business proofs<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Valid income proof<\/span>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">For self-employed: Credit card statements\/ last 6-month bank statements\/ P&amp;L statement\/ latest ITR\/ balance sheet\/ GST returns<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">For salaried borrowers: Last 2-month salary slip\/ Form 16\/ last 6-month bank statement\/ the latest ITR<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Property Proof<\/span>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Allotment\/Possession Letter<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Photocopy of chain title documents (if any) and draft sale deed\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">No objection certificate from the society<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Other documents depending on the legal report<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Mistake 5: Overestimating Repayment Capacity<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Analyze your monthly expenditures and settle for a suitable EMI amount using the online home loan calculator. Remember that your EMI outflow must not be more than 30-40% of your income. You need not worry about tenure if you&#8217;ve chosen a bank offering a long repayment term.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Avoid these mistakes and you&#8217;ll be ready to have a rewarding experience of using a house loan.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to make the most of a house loan? Then educate yourself to not make any loan-related mistakes. For instance, you&#8217;re paying heavy interest on your existing loan EMIs. Then try to transfer the home loan balance to a bank offering a lower interest rate. This can help you close the loan early.\u00a0 Here are [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":2005,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[75,78],"tags":[138],"_links":{"self":[{"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/posts\/2004"}],"collection":[{"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/comments?post=2004"}],"version-history":[{"count":1,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/posts\/2004\/revisions"}],"predecessor-version":[{"id":2006,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/posts\/2004\/revisions\/2006"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/media\/2005"}],"wp:attachment":[{"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/media?parent=2004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/categories?post=2004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.todayreels.com\/wp-json\/wp\/v2\/tags?post=2004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}