Dos and don’ts when applying for a home loan online
Digital advancements have made various financial transactions transparent – all one needs is a computer or smartphone and an internet connection. This also applies to any loan application, including a home loan. The traditional offline route, in comparison, is time consuming and also becomes impractical as one has to go with his documents to the offices of the loan provider.
Most home loan providers have now made it easy to apply for a home loan through their website. An applicant can register on the lender’s website, complete the application and submit it along with their documents in electronic form. The borrower will also be able to make the payment of the loan application online. When applying for a home loan, one can visit the home loan provider’s website and use the home loan eligibility calculator to find out the loan amount for which one is eligible.
For first-time home buyers, there are usually a variety of deals and offers that one can take advantage of. In addition, due to a low credit rating, restricted income or high debt-to-income ratio, or any other failure to qualify for the loan, if a person is denied the amount that she needs to borrow, experts say, taking a joint loan could help. Whether it is with a family member or close relative, taking out a joint loan increases eligibility for that loan.
Note that the loan approval process might also be easier, for a joint home loan with a co-applicant who has a better credit profile. This can increase the chances that the borrower’s loan will be approved, at the same time one can also be eligible for a higher amount.
By comparing loans from different lenders, you will not only be able to get the best interest rate, but also keep the overall cost of interest low until the end of the mortgage term.
Do’s and Don’ts when applying for a home loan online;
- The borrower must verify his eligibility for the loan before starting his mortgage application
- Keep the documents ready before you start the online application process. Go through the list of required documents in advance.
- Research the type of home loans available. The borrower should be clear on the type of loan they need – home loan, renovation loan, house extension loan, land loan, etc.
- A must for first-time borrowers – read Frequently Asked Questions (FAQs) before starting the loan application process.
- For any other question, you can use the online chat feature to get direct help.
- All the details needed by the loan provider to process the request should be provided truthfully.
Not to do
- One should not apply for a random or unrealistic loan amount without verifying eligibility.
- You should try to complete the loan application process in one go and not in stages. Take the time and sit down for the app.
- You need to have all of your documents ready – don’t forget to submit important documents.
- A borrower’s CIBIL score has an impact on their loan application. Therefore, one should not ignore the CIBIL score when applying for a loan.