Common Myths About Home Loans: Clarifying the Facts for Informed Decision-Making

Embarking on the journey to own a home through a loan is a significant decision. However, it's crucial to debunk prevalent myths that might lead to unnecessary confusion. Understanding the truth behind common home loan misconceptions is vital if you're eyeing a residential property in Baner Pune. Let's unravel five widespread myths:

Credit Score Is the Only Determining Factor

While a good credit score is essential, lenders consider various factors like age, employment status, and financial capabilities to determine eligibility.

Home Loans Post 40

Dismissing the myth that individuals can't secure a home loan after 40, many lenders consider the maximum retirement age as 60 for salaried individuals. Applicants aged 40 and above can still qualify for home loans based on their credit score, employment history, and other relevant factors.

Choosing Shorter Tenures Guarantees Savings

While shorter loan tenures may seem tempting to minimize interest payments, they can lead to higher EMIs. Opting for a tenure that aligns with your budget ensures timely EMI payments without unnecessary financial strain.

Full Property Cost Coverage by Banks

Contrary to belief, banks typically finance 75% to 90% of the property value, as per RBI guidelines. The exact percentage and eligibility criteria may differ among lenders, emphasizing the need for clarity on coverage.

Prepayment Always Involves Penalties

The notion that lenders always penalize prepayments needs to be more accurate. Policies vary among lenders, with many allowing a certain percentage of prepayment without penalties. It's essential to understand the terms of prepayment with your specific lender.

As you contemplate a flat in Codename Horizon Baner-Balewadi, understanding these myths and facts will empower you to make informed decisions before buying a home