New Delhi Home Loan Mistakes: If you are dreaming of a new house then this news can be special for you. Nowadays one has to spend a huge amount to build a house. For this, a home loan is required.

In today's market, you need a home loan. In such a situation, home buyers make some mistakes regarding home loans, which increases the burden of installments on their heads. Then the benefits he could avail. She slips out of his hands. We are telling you some of the common mistakes that home buyers often make while taking a home loan.

out of budget

The first mistake that people make is that either they are not able to make their budget properly after looking at the market or they go beyond their budget. You must be financially ready to buy a house. This should be the first rule of buying a house.

Buying a home is a big investment and one that requires equally big preparation.

Generally, banks ask you to make a minimum down payment of up to 20 percent of the home cost. You should save at least 40 percent. Finally, ensure that your home loan installment i.e. EMI does not exceed 35 percent of your take-home salary.

Attractive offers on interest

Banks often offer low-interest rates on home loans. Interest rates also vary depending on the season. Seeing these may tempt you to apply for a home loan. But home buyers forget that this offer is being given at an interest rate. That will increase later. Along with this, you will also have to calculate the expenses regarding processing fees, legal fees, prepayment fees, etc.

There should not be any other loan.

The goal of your financial planning before taking a home loan should be to create an emergency fund. If an emergency arises, you should have a backup of expenses for at least the next six months, you can increase it even further. Apart from this, if you do not have life or health insurance then get it first also. So that you do not have to face problems if a medical emergency occurs while you are paying home loan installments.

not maintaining balance with the bank

Not negotiating while taking a home loan from the bank can harm you. Most of the banks reduce the interest after negotiation or give a discount on processing or other similar fees. In such a situation, asking for a discount on a loan or other fees can be of some benefit to you.

Ignoring Credit Score

Be it a home loan or any other type of loan, banks check your credit score, the higher your credit score. Interest rates may also be reduced. Before applying for a home loan, check your credit report. If there is any mistake in it then get it corrected. Keep your total credit below 30 percent. Along with this, some other loans have also been taken. So that there is no negative impact on the credit report.