Things to Avoid Before Taking a Home Loan for a Smooth Experience
May 27, 2017 Home Loan
After finalising on a property to buy and getting all the necessary approvals for the home loan your work does not stop here. There are certain things that a loan buyer should avoid to get the loan approved smoothly without any holdback.
Your loan lender may take back from approving your loan even if you have repaid all the previous loans, saved for years for the down payment, got all the mortgage approvals. Make sure to keep your credit score in check between the loan approval and settlement date.
Here are some things that the buyers should avoid while taking a home loan so that the loan is cleared without any holdback.
1. Keep a track of your money:
Withdrawing or depositing a huge sum of money might raise questions for the lender. Make sure you have a proper paperwork to justify the money withdrawn or deposited. To avoid any confusion or any problem in future, it is advised to keep all the down payment money in one account separately.
2. Avoid taking any other loan:
When you have already applied to a home loan, avoid taking any other loan with it. This might exceed your income to debt acceptable limit and the lenders can further hold back from approving your loan.
3. Keep your savings safe:
The saving that you have made all these years after all the hard work and are hoping to use it to spend it on decorating your home or any other use, keep it safe. Don’t spend it all before the loan is approved. Before the settlement date arrives, the lender might want to check your cash reserves. If it is found low as compared to the previous statement, they might hold back from giving out the loan.
4. Don’t change your job:
Climbing the ladders of success when it comes to our profession is everyone’s dream. A job that offers a better salary and position is hard to let go. But if your loan application is in the process, try to avoid changing the job. Your loan application is approved based on the salary and employment status of the previous job. Changing the job in the midst of the loan approval might lead to the lender taking the step back from approving it.
A smooth and hassle free loan process are what one wants. Avoid these things can promise a good loan experience.
Your loan lender may take back from approving your loan even if you have repaid all the previous loans, saved for years for the down payment, got all the mortgage approvals. Make sure to keep your credit score in check between the loan approval and settlement date.
Here are some things that the buyers should avoid while taking a home loan so that the loan is cleared without any holdback.
1. Keep a track of your money:
Withdrawing or depositing a huge sum of money might raise questions for the lender. Make sure you have a proper paperwork to justify the money withdrawn or deposited. To avoid any confusion or any problem in future, it is advised to keep all the down payment money in one account separately.
2. Avoid taking any other loan:
When you have already applied to a home loan, avoid taking any other loan with it. This might exceed your income to debt acceptable limit and the lenders can further hold back from approving your loan.
3. Keep your savings safe:
The saving that you have made all these years after all the hard work and are hoping to use it to spend it on decorating your home or any other use, keep it safe. Don’t spend it all before the loan is approved. Before the settlement date arrives, the lender might want to check your cash reserves. If it is found low as compared to the previous statement, they might hold back from giving out the loan.
4. Don’t change your job:
Climbing the ladders of success when it comes to our profession is everyone’s dream. A job that offers a better salary and position is hard to let go. But if your loan application is in the process, try to avoid changing the job. Your loan application is approved based on the salary and employment status of the previous job. Changing the job in the midst of the loan approval might lead to the lender taking the step back from approving it.
A smooth and hassle free loan process are what one wants. Avoid these things can promise a good loan experience.
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