ATM :: 4 Things You Should Not Do Until Your Home Loan Is Sanctioned

Rajiv Raj | Nov 26, 2014, 02.06 PM | Business Insider
Buying a home is everybody’s dream. While with a variety of finance options available, realizing this dream into reality has become easier, you could still miss out on the opportunity if you make any of the below mentioned mistakes.

Hop jobs
While the offer of a new job is enticing, you should refrain from job hopping when you have to apply for mortgage few months down the line. Frequent job changes are viewed suspiciously by lenders as it implies job instability. Your lender can reject you mortgage request on account of this. As you apply for home loan, you must be employed at one place for certain time duration in order to be eligible. This period could be anywhere between one to three years.

Change Residence
You should not change your residence between the time of applying for the loan and till the same is sanctioned. This is because the address that you mentioned in the loan application form would be investigated by the lender during Contact Point Verification (CPV) check. If your CPV check is negative, that is if you are not available at the residence mentioned by you, the loan application can get rejected.

Close an old loan account
While it is a known fact that a bad credit behavior hurts your CIBIL score, but what you should also know is that some good credit behaviors can also have a negative impact on it. Closing one of your old credit card accounts, especially if it has a clean repayment track record, is one of them. This is because the length of the credit history is an important factor in determining your CIBIL score. The longer it is, the better it is. So you should avoid closing any credit account before applying for a home mortgage.

Avoid taking another line of credit.
If you have to apply for a home loan in few months, drop the idea of adding another line of credit. In calculation of your home loan eligibility, your existing lines of credits are also taken into account. Suppose you want a loan of Rs 25 lakh on which home loan EMI works out to be Rs 25,000. But if you had taken a personal loan sometime back towards which you are paying Rs 10,000 as EMI, then as per fixed obligation to income ratio the reworked EMI for the home loan would be only Rs 15,000. Accordingly, your home loan eligibility would be reset.

If you pay heed to the above mentioned points, closing your home loan mortgage will be a smooth sailing process.

About the author: Rajiv Raj is the director and co-founder

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