Homes are as much a means of self-expression as they are a need. Plus, when it comes to an advanced and high-tech city like Bangalore, who wouldn’t want to establish a permanent residence! Well, today, you can easily do so with the help of home loans. However, before you apply for home loan, make sure you are well-aware of these common home loan problems and their remedies. After all, prevention is better than cure, right? 

Problem #1 Failing to meet home loan eligibility criteria 

The very first stage of availing a home loan online is to pass the hurdle of eligibility. Lenders have specified home loan eligibility criteria, both for salaried and self-employed individuals, which must be met for loan sanctioning. These criteria include age, income stability and employment, CIBIL score, etc. Often, borrowers hastily apply for home loan, only to be met with rejection. You can avoid this by using online home loan calculators such as the home loan eligibility calculator. 

Problem #2 Documentation hassles 

With easy home loans, the need for cumbersome paperwork is far behind; however, several relevant housing loan documents must be furnished along with the application to ensure home loan approval. Lenders will verify these documents and convince themselves of their credibility before loan sanctioning. Many borrowers either fail to submit all the required documents or submit the incorrect ones. Either way, their application is rejected. Make sure to carefully go through the document list before you apply for home loan. 

Problem #3 Sanctioning of less loan amount 

As mentioned earlier, lenders will approve your home loan based on a several factors such as age, income and employment stability, CIBIL score, etc. If you fail to fulfil them, your application may be rejected. However, the lender may sanction your loan but with an amount that is lower than the desired principal. To avoid this, you can enhance eligibility by applying with a co-applicant. Moreover, use an online home loan calculator to determine your affordability. 

Problem #4 Charging of high home loan interest rates 

Again, this is the problem of home loan eligibility. Applicants with high eligibility are generally charged lower home loan rates when compared to those who do not meet eligibility criteria (yes, lenders may not reject the application altogether, but charge higher interest rates in some cases). To avoid paying high home loan interest, make sure your CIBIL score is top-notch, preferably above 750. 

Problem #5 Discrepancy in the valuation of property 

Once you have passed through the hurdles mentioned above comes the problem of discrepancy in the valuation of property. Lenders have their own legal, technical, and financial experts to help them determine the value of your property. If during the home loan inspection process, the lender’s valuation of your property is below yours, they will sanction only the amount they estimate, as housing loan. However, you can avoid this discrepancy by having your property evaluated beforehand or choose one of your lender’s approved properties. 

To make the process of buying a house in Bangalore smoother, make sure you carefully go through your chosen lender’s eligibility criteria and use an online EMI calculator for home loan to be better prepared for your monthly payments. And once done, make sure to commit to your EMI payments strictly, and then there is practically nothing standing in your way to hinder you from acquiring your dream home.