Expert Advice: Common Mistakes to Avoid When Applying for ICICI Home Loan

The ICICI home loan brings an opportunity to get your dream home. It provides competitive interest rates, the lowest being 8.75% p.a. The rate is specifically for customers with pre-approved home loan offers. Even those without can get a great ICICI home loan interest rate if they have a great credit score. But everyone can benefit from a hassle-free online applicant process that allows instant sanction with minimal documentation. 

At the same time, there are some mistakes that people commonly make before applying for any home loan. These mistakes can affect your ability to get a good interest rate, repayment tenure, etc. So, ensure you don’t make the same mistakes by familiarising yourself with the section below. 

Avoid these Common Mistakes Before Applying for an ICICI Home Loan

A home loan is an important financial decision to get you your dream home, and the last thing you want is to hamper a good offer by making any mistake. So, know the common mistakes from the points below and ensure you don’t make them before applying for the loan. 

Not Managing Debt Responsibly

One of the biggest mistakes you can make is not properly managing your previous debts. Every lender evaluates your credit history and how you have handled your money. It tells the bank whether you are creditworthy and can repay the home loan. So, ensure you pay off your previous debts on time and have a good financial record. 

Poor Credit History

A poor credit history is another one of the primary mistakes you can make before applying for a loan. Your credit score and history influence your ICICI home loan interest rate, and lenders scrutinize it more deeply. So, any excessive outstanding debt, defaults, or late payments will reduce your credit score and affect your report. But, if you have made your payments on time without any outstanding debt, your credit score becomes high. That makes a positive impression on the lender, and you are much more likely to get your loan. 

Not Comparing Your Options

Most lenders, including ICICI Bank, provide several home loan products. You can be eligible for more than one offer. So compare all the home loan offers you are eligible for and then pick the best one. Not comparing your options makes you settle for whatever you get, and that can lead to a high ICICI home loan interest rate. Ensure you always choose the best and estimate your EMI and interest.

Home Loan Eligibility Calculation

One of the important things that you must do before taking your loan is estimate what the EMI will be, how long the tenure will be, and how the interest affects both. Use the ICICI home loan calculator to understand your EMI and how long you will pay your loan. The information helps you plan your finances accordingly to repay your loan on time. 

Employment Stability

Your income is a significant factor in deciding whether you get the home loan amount you need. An unstable employment history will make lenders hesitant to approve your loan application. So, your stable job history will play in your favor if you have at least 12-18 months of continuous employment under the same employer. Secure your home loan before you consider making any career move or transition. 

Additional Costs

Get your loan after you have checked what the additional costs will be. Don’t make the application if you are not aware of what the charges will be alongside your interest. Additional costs generally include stamp duty, processing, legal, and registration fees. Factor in the entire cost of getting a home loan and then check how much you can use to get your home. 

Conclusion

Getting an ICICI home loan is easy if your documents, income statements, credit history, and score are in order. You can negotiate your ICICI home loan interest rate and get favorable terms if you have a good credit score. But you must settle for any interest rate the lender charges if you have an average score. Similarly, estimate your EMI for the fixed tenure using the ICICI home loan calculator. Making your calculations helps you understand how much you need to pay monthly to repay the loan and how long the repayment will take.

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