Thinking of buying a home in 2026? Know these 5 things before taking a home loan, otherwise you will regret later!

Home Loan 2026: As soon as the new year starts, many people start planning to buy their dream house. But taking a home loan is not just a decision to pay the EMI, it is a long financial commitment. If you do not prepare properly from the beginning, your budget may get spoiled later. So, before taking a home loan in 2026, understand these six important things to ensure that your decision is wise and beneficial.

1. How strong is your credit score?

In the home loan world, your credit score is your first impression. Agencies like CIBIL, Equifax, Experian and CRIF track your entire credit history using your PAN number.

Most banks easily give loans to people with CIBIL score of 750 or more. However, a low score does not mean that you will not get the loan but the interest rate will be higher and the terms and conditions will also be more stringent. Therefore, it would be good to start working on improving your credit score before purchasing your home.

2. How big a house can you buy?

Before you start thinking about what kind of home you want, it’s important to understand how much you can realistically afford. Banks usually give loans only up to 80-85% of the property value.

Keep in mind that your home loan EMI should not exceed 40% of your net take-home salary. Also, think about whether you will be able to manage the increased EMI if interest rates increase in the future.

3. How much money do you have ready for down payment?

For a home loan, you usually have to contribute at least 15-20% of the property price yourself. It is best to keep a target of 20%.

For example, if the price of the house is ₹80 lakh, you will have to arrange for around ₹16 lakh yourself. This amount can come from your savings, inheritance, or funds withdrawn from Provident Fund (PF). Taking a personal loan for down payment can be an expensive option, so it is better to avoid it.

4. Pay off high interest debts first

The interest rates on expensive loans like credit cards and personal loans range from 18% to 40%. It is very important to repay these debts before applying for a home loan. When banks see that you have repaid your high-interest loans, your loan eligibility increases and you are more likely to get a home loan at better terms.

5. Don’t depend on just one bank

Your existing bank may be trustworthy, but do compare the offers from other banks and NBFCs in the market. Look beyond just the interest rate and also consider the processing fees, prepayment charges, loan tenure and flexibility. This will help you get a better deal.

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