What are the most common mistakes in obtaining a housing loan?
You are in the process of buying a housing loan and you want to find the bank that offers you the most appropriate interest rate and get your loan and reach your dream house. At this point, we recommend you to take a break and take a look at the mistakes that are often made by creditors. Are you making the same mistakes? Take a look at the items listed below to avoid making mistakes that you may regret later.
Choosing Long Term Payment Options
Generally, long-term payment options when buying housing loans, you may pay less monthly installments may cause you to think. However, you should not forget that the longer the term, the more interest will be paid. The longer the loan term, the more interest you will pay back to the bank. For this reason, you should prefer a minimum term housing loan.
Not Calculating Costs Except Interest
Anyone who receives a housing loan usually pays attention to interest rates and makes their calculations accordingly. However, in addition to the interest cost, there are also commissions, file charges and expertise fees, insurance premiums received from the consumer. Sometimes it is possible to overcharge these costs by inflating. It is therefore very important to calculate the additional costs and, most importantly, to compare them.
One of the most common mistakes made by consumers using credit is to take out unnecessary insurance. When you take out a mortgage, banks offer insurance with different guarantees to secure your loan. However, as a consumer, you are only liable to provide the cost of earthquake insurance when receiving a housing loan. Other insurance costs are at your discretion.
Failure to Understand the Contract
Most of the time, banks open bank accounts, give bank cards or perform different account transactions to consumers with different clauses in contracts. Consumers also have to deal with these transactions because they do not examine their contracts in detail. It is possible to obtain general information about credit transactions by requesting a pre-contractual information form before you encounter such situations.
Non-Retention of Credit Documents
Most consumers using housing loans find it unnecessary to keep documents after they receive the loan. However, storing credit documents means that you have documents in case of a problem with the bank. Otherwise, you may be charged for each document you request from the bank due to an unpleasant situation with the bank or if you apply for a refund of your expenses.
Not enough research
When receiving housing loans, it is often recommended that banks are directed by the construction company from which the housing will be purchased. There are more than 10 banks in our country and each of them competes with each other with interest rates. For this reason, you should not choose the bank you will receive housing loan without doing enough research.