Apply for a Home Loans: First Check These Myths

It's a dream for almost all middle-class families in India to have a home of their own. We Indians give predominance to homeownership be it small or large. But rising property prices and demand for a home in posh locations would eat away nearly all your hard-earned savings.

Inevitably, most people looking to buy a house would have to apply for a loan from banks or housing finance companies, to pay the bill.

It is important to make a more informed decision when applying for one and be transparent. Ensure that there is no room for misunderstanding or error. The financial decision that a person takes at the time of securing a home loan will remain with them for a substantial part of their life.

So, Check These Myths Before Applying for a Home Loan.

1. Short Tenure Loan is Best

It's a misconception that short-term loans are the cheapest. Generally, a home loan comes with a long tenure, and the underlying truth when it comes to a home loan is that long-term loans are the safest option. Since the borrower remains indebted to the lender.

The equated monthly installments (EMI) would be comparatively higher in the case of short-term loans as compared with the long-term ones. Higher EMIs would affect your monthly budgetary expenditures, leaving no space to prepare for any windfall. Although short-term loans help the borrower pay back the sum of the loan quickly, they are not an ideally suited choice. At Shubham Housing Finance offers you with customizable EMI options making it easier for the customers to repay the loan.

2. Rejection of Loan Application due to poor credit score

Though most leading banks are strict about credit scores and getting a strong credit score would help you get quick approval of a home loan. It is not true that the credit score alone will determine the loan application's fate. A credit score of more than 700 is considered as good.

At Shubham Housing Finance you can apply for a loan with a low or zero credit score. Only you should have the required documents to show when applying for a loan.

3. Lower interest loans are best

Most of the applicants prefer lower interest rates on their home loan but the lender will determine the interest rate on a housing loan based on several factors including your income level, loan tenure, credit score, loan amount, and so on.

While low-interest rates look attractive, but in the end, the borrower may end up paying higher down payments. With Shubham Housing Development Finance Co. you do not have to pay any additional charges.  Also, you can enjoy fast processing and quick disbursal of your loan.

So keep the above-mentioned myths in mind when applying for a home loan.

Also, if you have any further queries or you would like us to add anything, kindly mention your thoughts below!