Dos and Don’ts When Applying Online for a Home Loan
- 0.1 Introduction :
- 1.1 Read the fine print
- 1.2 Have a good credit score
- 1.3 Lender Credibility Verification
- 1.4 Research and evaluate your choices
Digital advancements have made a variety of financial transactions smooth and seamless. All you need is a smartphone, computer and internet connection. You can also get a home loan now from the comfort of your house with the click of a button. The offline route comparatively, is tedious and time-consuming and is not necessarily convenient.
Most financial institutions have facilitated making the home loan application through their own website like ICICI home loan. If you want a home loan, all you need to do is register on the website, fill in the necessary details in the application, upload relevant documents and submit the application online. You can also make loan payments online. Make sure to visit the website of the loan provider and read all the details regarding the home loan and use the home loan eligibility calculator to know if you are eligible for a loan and the loan amount you will be offered.
Dos of Applying for a Home Loan Online
Read the fine print
Have a good credit score
While a lot of new-age financial institutions might look beyond your credit score, it is still an important part of the loan process. The creditworthiness of an individual plays an important role in the approval process. Individuals who have a history of good credit or CIBIL have a better chance of getting their home loan application approved.
Lender Credibility Verification
Borrowing money is a big financial decision because you need to plan the methods of repayment before you even apply for the loan. Hence, it is very important to validate the credibility of the lender. Make sure that the financial institution has a reliable history of lending and is verified by the Reserve Bank of India. Stay vigilant of any non-verified lending institutions asking you for confidential information such as a PIN, address, account number and bank details. Beware of any tactics and always verify the lending source you apply for an online home loan.
Research and evaluate your choices
Before you choose any home loan, make sure that you compare lending terms, interest rates, repayment options and loan tenures. Choose the option that suits your financial situation and needs the best.
Don’ts of Applying for a Home Loan Online
Do not hand over any physical documents
The main purpose of an online loan structure is to make the process of lending safe, contactless, hassle-free and convenient. Therefore, if any agent or company is requesting you to hand over any document physically, it goes against the sole purpose of the online loaning system. Hence, it is advisable to upload all the documents on the verified lender’s website and not entertain any company or agent asking for physical documents.
Do not hesitate to go for a home loan jointly
A joint home loan improves the chances of home loan approval, especially if your co-applicant is an earning individual and has a good credit history. In addition, a woman co-applicant will also make you eligible for interest rate concessions..
Do not go for a longer tenure
Even though home loan tenures are available for as long as 30 years, you should try to repay the loan as soon as possible. The longer the time period of repayment, the larger is the outflow of interest so try to go for a shorter tenure that has an EMI that you can comfortably repay to reduce the loan burden overall.
Do not quit jobs right before you take a home loan
Home loan lenders prefer borrowers who have a stable income and a steady job. Your employment and income play an important role in deciding whether you get a home loan or not. Hence, if you are planning to take a home loan in the near future, it is a good decision to stay in your current employment.
Do not take any other loan right before a home loan
The lender goes through the potential borrower’s credit history right before they sanction a home loan application. Taking a new loan increases your loan burden, which makes lenders cautious. Hence, it is a good idea to put off taking new loans or applying for a credit card right before applying for a home loan.
While a home loan can help you immensely in realizing your dream of buying a home, it is important to understand what borrowing money entails. Banks and financial institutions have all gone digital now and it is a seamless process. However, it is important to be aware of the tips mentioned above to maximize your chances of getting the home loan approved.