With high real estate prices, home buyers often find it difficult to buy their dream home. Home loans in such cases make it easy by funding up to a certain percent of the cost of the property. Home buyers nowadays commonly avail home loans. However, there are lots of misconceptions about this loan variant in the market. Experts say, with so many misconceptions about home loans, buyers can fall prey to such myths if they do not know and understand the facts properly. If you are planning to take a home loan, find out 5 common misconceptions around home loans: Credit Score It is mostly believed that high credit score easily fetches approval on all loan applications. However, that is not the case; a high credit score does not ensure approval of a home loan. Other factors like expense ratio, income, profession, current obligations, also influence the underwriting decision. Banks negotiate interest rates and charges Banks, as well as housing finance companies, extend discount depending on the borrower up to a certain limit on charges and interest rates. This is done to retain the customer and get their business. So, experts suggest borrowers should give it a try and ask for it because even with a small difference in the interest rate you can end up saving a large amount of money on these large-ticket size loans. Lowest interest rate The lowest interest rate is considered as the best deal, but that is always not the case. Though interest rate is one of the important considerations, there are other factors that also influence the cost of funds. Other charges like legal charges, processing fee, also get added to the cost. Maximum Loan To Value The LTV (loan to value) is not restricted to 80 per cent. Though it is commonly believed that home loan gets restricted to 80 per cent of the property value, depending on the borrower, lenders increase the loan value. The LTV also goes up to 90 per cent. Prepayment of Home Loan Prepayment of a loan is a good policy, but not always the best option. It is believed that most often than not, lenders levy heavy penalties on pre-payment and foreclosure of home loans. However, that is not the case. According to the RBI\u2019s instructions, prepayment\/foreclosure charges cannot be levied on floating rate-based home loans by lenders. Such charges, however, can be levied on fixed rate-based home loans, which also vary from lender to lender.