4 Things you should not do until your home loan is sanctioned
Everyone have a dream of buying a new home. But purchasing it is not an easy task. Even if you have spent all your savings, you may still need funds to fulfil your dreams. In such case, you need home loan but before lending you a loan, your lender not only check your income, there are lot of other things your bank verifies. Hence, after applying for the Home loan and all the hard work you have put in to secure the loan, don’t do these silly mistakes that can derail the most important goal of your life.
Do not change job
After you applied for the home loan, don’t think of changing a job even if your new job offer is enticing. Your job stability and regular income are the most important factors that decides your credit worthiness and loan eligibility. Frequent job changing will provide bad impact on your lender as it shows job instability. In such case, your lender may reject your loan application. Hence, when you apply for a home loan, you should be employed at one place for at least one to three years.
Do not change Residence
When you apply for a loan, you should not take your address lightly. It will be better if you do not change your address till your loan is sanctioned. This is because, all the necessary and important documents will be delivered at the address that you have mentioned in the loan application and the same address will be verified by the lender during CPV (Contact Point Verification) check. If lender finds your CPV check negative that means if you are not available at the mentioned address during CPV check, your loan application get rejected.
Do not close an old loan account
Bad credit history will decrease your CIBIL score. Therefore, it is necessary always to keep good credit score. A clear and long Credit history will help your lender to know about your credit worthiness and repayment behaviour and can improve your chances of getting a loan. Thus, closing your old credit card accounts, when it has a clean repayment track record is a silly decision.
No more credit, please
One more credit implies lower eligibility for home loan. Drop the idea of taking any credit or loan, if you have decided to apply for home loan in few months. It will increase your monthly burden. All your existing loans and line of credits are also taken into account. Even if you apply or get any loan/credit after you have applied for a home loan, it will be noted in your credit report and after checking it, your lender may reject your loan application.
A cheque bounce is a major thing that can have a negative impact on your home loan application, especially when your processing fee cheque gets bounced. Borrower must ensure that he maintains sufficient amount or minimum average balance in his bank account and unusual or irregular bank transactions must be avoided.
If you keep the above points in mind and go according to it during the application of the home loan. No lender will reject your application and it will become a smooth sailing process.