Do you know that the mortgage loan interest rates are quite low? Mortgage loans are particularly helpful when someone faces a cash crunch. But many people shy away from taking a loan hearing misconceptions or myths about loans. These myths not only prevent them from taking a loan but also blocks the way to success.
Of late, loans have become cheaper and hassle-free. So, should you stop yourself without knowing the truth? Here are a couple of mortgage loan myths that have been doing the rounds for a while.
Read on to know why you should not pay attention to such myths. You can apply for easy loans on the web to pursue your dreams.
You Cannot Be In Debt To Seek A Loan:
Well, it’s true that debts can make an impact while seeking a loan. But you can apply for a new loan and get it even with existing debts.
When a lender approves a loan, they look at the borrower’s debt-to-income ratio. Suppose, you already have a car loan running and the EMI you are paying is 25% of your total income. Here you can easily get another loan as your monthly income is sufficient to take care of the existing debt.
If your debt-to-income ratio is too high presently, you are left with two options. You can either work more to pay off the existing debts or find ways to create more income. You can talk with a lender regarding the solution that will work best.
Those interested in taking out a loan can approach several banks and non-banking financial companies (NBFCs) like Bajaj Finserv.
To assess the overall cost of the loan, you can use a mortgage loan calculator.
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Browsing Around Lenders Hurts Your Credit Score:
This misconception arises because many people pay a visit to lenders and eventually step back. These purposeless inquiries influence their credit score.
Someone who is seeking a loan should visit and compare the rates across lenders. It helps them get the best interest rate along with other facilities. Moreover, your credit score will not see any impact if you take the loan within 30 days of inquiry.
Do not pay attention to these mortgage loan myths. Let’s consider the things that would help you get instant mortgage loan approval:
- Good Cibil Score:
The credit report score has become a major factor for loan approval. Your CIBIL report tells the lender whether you are financially able to pay off the loan or not. Be it a home loan or a personal loan, lenders will closely examine your credit score before approving it.
While seeking a loan, it’s important to have a good credit score. It helps the lender understand your financial capabilities. Suppose, you already have an existing loan. If you have made timely payments of your EMIs, you should have a good credit score.
- Less Liability Is Better:
Before giving approval for a loan, lenders examine certain factors like previous loan payment records. By doing this they get to know your repayment ability.
- Documents Are The Key:
Documents are the most important thing for loan approval. As you need to put a property on mortgage, it’s necessary to have every document at hand. The absence of any document will lead to rejection of the loan application.
Do keep in mind that the property must be in the name of the borrower.
If the property is in your father’s name, then he should be the loan applicant and not you. Along with the property documents, you must submit your identity, residential, and income proof to the lender.
These points ensure that your home mortgage loan is approved easily without any hassle.
Taking a loan is certainly a liability. So, it’s best to assess your income and repayment ability. You should seek for a loan after you consider all your options.
Borrowing what you cannot repay is not advisable at all. Remember that non-payment of installments of home mortgage loans may force the lender to auction off the property.
Pay no attention to mortgage loan myths. You can pursue your big dream like going for a course abroad or arranging a grand wedding by taking out easy loans.
All you need is a little bit of planning and caution.
NBFCs likeBajaj Finserv brings you pre-approved offers for, home loan, personal loan, and EMI finance on different products and other financial services. Not only does this simplify the process of availing financing, but also helps you save on time.
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