Applying for a home loan is a major financial decision. But small missteps can lead to rejections, higher interest rates, or loan disqualification. Understanding what to avoid can make your homebuying journey smoother and smarter. Vizzve Finance brings you this essential guide to steer clear of the top 5 mistakes that first-time borrowers often make.
❌ Mistake 1: Not Checking Your Credit (CIBIL) Score
Why it’s a problem:
Your CIBIL score is the first thing lenders evaluate. A score below 750 may result in rejections or expensive interest rates.
What to do instead:
Check your score before applying
Clear outstanding dues
Dispute any errors
Improve it through secured credit tools
❌ Mistake 2: Not Comparing Loan Offers
Why it’s a problem:
Many applicants go straight to one lender without comparing. This can cost you thousands in extra interest.
What to do instead:
Compare interest rates, processing fees, tenure, prepayment terms
Use platforms like Vizzve Finance for side-by-side comparisons and tailored offers
❌ Mistake 3: Overestimating Loan Eligibility
Why it’s a problem:
Just because you earn ₹50,000 per month doesn’t mean you qualify for a huge loan. Factors like existing EMIs, job stability, and FOIR affect your eligibility.
What to do instead:
Use an EMI calculator
Ensure FOIR (Fixed Obligations to Income Ratio) stays under 40%
Apply for a pre-approval via Vizzve before house-hunting
❌ Mistake 4: Ignoring Hidden Charges and Fine Print
Why it’s a problem:
You might end up paying more through hidden processing fees, legal charges, foreclosure penalties, etc.
What to do instead:
Always ask for a loan fact sheet
Understand all terms before signing
At Vizzve, transparency is key—we break down every charge upfront
❌ Mistake 5: Changing Jobs During the Loan Process
Why it’s a problem:
Switching jobs before or during the loan process may delay or even cancel approval. Lenders want employment stability, usually 2+ years in the same job or field.
What to do instead:
Avoid major job moves until your loan is disbursed
If unavoidable, inform the lender with full documentation
✅ Pro Tips from Vizzve Finance
📋 Get pre-qualified before property selection
🧾 Keep all financial documents updated
📊 Maintain a clean credit history
🧮 Use tools like Vizzve's loan calculators to plan better
🤝 Talk to a Vizzve loan advisor for personalized guidance
📌 Conclusion
A home loan should empower your dream, not become a burden. By avoiding these common mistakes, you improve your chances of fast approval, better rates, and a stress-free experience. With Vizzve Finance, you're never alone—our digital tools and experts guide you every step of the way.
Published on 3rd July
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.