Before you decide to apply for home loans, you should have clear-cut answers you to avoid future blunders. This financial decision involves long-tenure borrowings that can spoil your other investment plans. Whether you plan to purchase a readily available apartment or under-construction property, you need to give enough attention to selecting the most suitable loan amount that you can be capable of repaying in the future. In recent times, turning towards taking home loans has increased significantly due to the reduced interest rates offered by different financial institutions.
Here are some of the most vital questions you should ask yourself before taking up a home loan to prevent making future mistakes.
Do you Have Adequate Margin Money Available With You?
Before applying for a home loan, it is important to know that banks only provide a loan of up to 90% of the property’s valuation; the rest will have to be contributed from the borrower’s side. Buying a home doesn’t only includes property value, but you also have to consider the associated expenses like EMI, interior decoration, property registration, and others.
The amount of down payment differs from loan size, lender’s age, CIBIL score, and other considerations. If you are ascertained the margin money that you will pay for buying a property, you can commit to taking the loan.
Do You have the Affordability to Pay the EMI for the Long Term?
Since taking a home loan means making a financial commitment for a long period, you should consider your creditworthiness to continue paying the EMI for years. Suppose you have a plan for taking an educational loan for your child shortly.
Thus, adding a new one can limit your repayment capacity. Hence, you will find it challenging to afford the future EMI of your home loan. Therefore, always evaluate your financial status so that no other obligations can hinder your living path.
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Do You Have Stable Earnings?
It is vital to ensure having regular earnings so that you can be in a position to repay your ICICI home loan on time. Be prepared mentally and financially before you opt for a home loan application. If you feel uncertain about your current income, you can arrange for additional earnings to have lifetime financial stability. You can start your own business or join a part-time job to elevate your amount of cash flow.
Have You Checked Your Buying Property with a Legal Advisor?
While buying any property, it is of utmost importance to get the legal documents verified. Make sure to take legal advice from a professional lawyer to eliminate the occurrence of future disputes. Most times, it is seen that builders want to hand over illegal properties to the customers, and they suffer from it for the rest of their lives.
Therefore, it is suggested that lenders do their property valuation before loan sanction. If the bank finds any legal discrepancy, they will instantly reject the loan application. Therefore, it is best to stay on the safe side and get advance clearance from your legal advisor before you face any rejection.
It becomes significant to encourage home buyers to stay enlightened about every detail of the home buying experience.
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