Most common problems faced by housing loan borrowers
Category: Home Loan
Nowadays, buying a house has become so expedient with Housing loans that anyone can own their dream house without any hassle. Multiple lenders have started providing home loans with easy steps and that too within few days, but still people are facing few problems. Besides the fact that lenders help borrowers throughout the process, there are certain problems which a borrower generally faces.
HOUSING LOAN does solve your problem of owning your dream accommodation if you stay careful while applying for home loan.
Following are some of the common problems faced by housing loan borrowers that you should resolve wisely:
1. Interest rates: there are two types of Home loan interest rates
- fixed and floating. Fixed interest rate remains same throughout the loan tenure while floating interest rate fluctuates as per the market rate. People prefer to go with floating interest rate as it is generally lower than fixed rate, but floating rates vary from time to time. So even after years of repaying loan, principal amount remains unchanged because of the rising interest rates, which is why customer should take the step carefully when it comes to interest rates.
2. Documentation: Before applying for housing loan
, one should make sure that all the documents are present because the invalid documentation may cause you the rejection of your application. Firstly, you should check all the required documents and arrange them, so that you’ll be ready with all the documents while applying.
3. Credit Score: This is the basic reason of rejection before even the process starts. Check your credit score to know whether you qualify for the loan
or not. Generally, 750 or above is considered to be a good credit score, so make sure you are close to it because if the bank finds out that your financial credentials are not up to marknull, they’ll reject your application.
4. Processing Fee: One of the major reasons that you should check your eligibility before applying home loan is processing fee. Bank requires 0.25% to 1% of your loan amount as a processing fee with your application and this fee is non-refundable, which means if your application got rejected, you won’t get the amount back. Home loan
amount is normally a huge amount; ultimately processing fee is also a huge amount, so you better make sure that you are eligible to get the loan.
Above mentioned problems are curable or solvable if you follow the process carefully, or take the help of financial service providers like Creditnation. We help you to know all the in and outs of the process and we even help you throughout the process. Be it advice or help to get the loan, feel free to contact us and we’ll be glad to help you.