Why Exercising Caution Is Must In The Home Loan Process
For any salaried home buyer, taking a home loan is a life-changing decision that takes a lot of mental and financial preparation. As the stakes are too high for you to take any chances, you have to ensure you are signing up for the right deal. This is why exercising caution at each step of your home- purchase process is a must.
All that glitters
As tempting as they sound in the first look, those flashy advertisements by banks that offer you unbelievable discounts should certainly be taken with a pinch of salt. Remember that financial institutions have a comprehensive process to appraise, sanction and disburse home loans; they would never extend loans “with zero documentation” or disburse the amount within “two-three days”.
Where is the proof?
Any lender who in insisting for a fee in advance, especially without giving any written proof or formal documentation being involved, may be making an empty promise. Most lenders charge only the processing fee before the home loan appraisal starts. Other than that, your lender should not ask you for any other charges.
Answer my question!
Do remember that lenders are liable to answer all your questions revolving around those loan advantages. And if there is no sign of that happening, you may be entering the danger zone.
Are they online?
Online financial scams are quite common and you should refrain from sharing your financial details online. According to the process, no lender or government agencies has the right to ask for your financial information online. This is why an authentic- looking webpage that asks for your personal information must be a red alert.
Also, applying for a home loan online may not be a good idea. While you share your personal information this way, this also gets noted in your credit report. In case you do not avail of the loan immediately for some reasons, this will negatively impact your chances of getting a loan in future.
What's the hurry?
Do not succumb to any pressure of signing the loan documents without reading and confirming each and every term and condition mentioned in the application form. Make sure that you sign every single paper and do not ask the agent to do it for you.