6 Risks You Should know before taking Home Loan
Everything we do in this life has both positive and negative effects. Some people take a home loan and buying a house is a very difficult thing. You can know about the challenges while buying a home loan. I am going to give you a total of 6 challenges. Let’s find out what those 6 challenges are.
You’ll pay EMI every month for a long tenure and pre-payment attracts a penalty
Remember that a certain amount from your salary income will be going from your account for many years. Even if you want to prepay, you can do it after paying a penalty amount. Before you buy a loan, make sure you know whether you can afford the payments for 20 to 30 years.
Finalizing the location could be expensive or it may attract legal issues
If you decide to buy a house and buy in a suburban area, you will incur more traveling charges. If we want to buy in the center of the city area, we will not have the budget as expected. When you buy a home in the center of the city, look carefully at its document background. Because the place may be government-owned or the front of the house may be owned. This may cause you to demolish parts of the house.
Needing More Space as Your Family Grows
If you are buying a 2BHK house at the age of 30 to be budget-friendly, if you get married and have children later, the house will not be comfortable for you. Especially if your children grow up, they will need separate rooms. So, while buying your own house, think about the future and buy according to it. If you can’t plan like that, it’s better to stay in a rented house.
A Sudden Change of location or job will be difficult
Many people take housing loans for tax exemption. You may lose your job in tough situations like Covid 19, Layoff, etc. Due to this, you may not be able to pay the EMI. In such situations, you may not be able to change location suddenly. Remember that a home loan is a long-term commitment so there will be challenges like this.
Confusion During Home Selection
When buying a house for many people, it seems like whether to buy a house with all the facilities or to buy an individual house. When you buy an individual house, you own the land and the house. But you have to spend on the garden, gates, and compound. But if you buy a house in a gated community, you will get all kinds of facilities. But there will be many restrictions such as not keeping dogs and not making noise after 10 o’clock.
Unexpected Hidden Charges
When you take a loan, they will not tell you that this is the loan, this is the fees and this is the interest. Thus, there will be hidden charges while you are paying the loan. They call it closing fees and appraisal fees. You may have guessed that this is the amount, but you may end up paying more than that. Since you have taken a loan, you will be forced to pay hidden charges. Ask and know all this before buying a loan and getting a suitable housing loan.
