We have said it a hundred times that buying a home is a big step both financially and emotionally. One saves and plans a lot for the day when he/she will be able to purchase a house that they can all theirs. To help you fulfill your dream Trimurty Builders not only brings you world class residential projects but also some important piece of information that must be kept in mind while buying a home.
Often there are time when the money lender backs-out on the last moment. Thinking why? Well, their can be a few reasons, for example if you have taken up a home loan and eventually applied for a car loan on a later date, chances are that the lender cancels off the deal because two loans affects your credit score.
To make sure that you do not encounter such a situation, we have created a list of five things/actions to avoid while buying a home, especially when it’s financed via home loan.
1. Don’t move your money
Remember, never move your money without the right paperwork. As your bank statement is the first thing that a lender will check. Always keep the paper work and statement handy in case you have made a heavy deposits or withdrawal. Lastly, an important piece of advice, before you apply for a loan, keep all the money you are planning to use for the down payment in one bank account.
2. Further debts
The income to debt ratio plays a very important role in maintaining the right credit score for any borrower. Therefore, when you have applied for a home loan do not burden yourself with any further debts. Taking loan apart from home loan might result into an income-to-debt over the acceptable limit.
3. Delayed payments
Always pay EMI on time. It is imperative that one does not miss and delay any payments. Take a note to be on time and if possible even be before time. Not doing the same will have a negative effect on the credit score, that we know is the last thing any borrower would want.
4. Changing job
In normal situation one would and should accept a new job offer that pays well and also takes you in right career direction. But avoid taking it, if you have applied or are soon to apply for a home loan. As a new job while you applied for home loan could be a deterrent. A lender verifies employment status of the borrower and hence, a change in job could cause of uncertainty.
5. Spend your savings
Keep your savings intact, as you would need them for making the down payment. And before the settlement date arrives, the lender might check your cash reserves. You sure don’t want to upset the lender with a cash reserve lesser than what you would need at the time of down payment.
