Skip to main content

Why is my Lender Asking So Many Questions for Verification of Home Loan

It is but obvious when you go in for applying for a home loan that the lender will first view you very critically and carefully. Why? You have a good job, you and your spouse may both be working, you may also have a vehicle of your own, but still whenever you first go and ask for a loan you are under the hammer!
It is true that you may be financially secured and has your finances in place but the lender does not know this. For them you are another new borrower whom they have to view critically and judge about your financial repayment capacity and long term decision of a home loan. You will be asked so many prodding questions, which you feel may look irrelevant to your loan , but the lender here is trying to judge your financial habits. Your financial habits means your spending habits, whether you are lavish and extravagant in spending,, whether you are practical in spending. This will help them understand your financial habit, whether you are the saving and sparing type or the extravagant and emotional spender type. You also may need to answer questions regarding your family members and earning members in the same along with the number of dependents. All this may look irrelevant now but imaging over the years since home loan is a long term commitment the lender only needs reassurance that you will sincerely pay back the loan amount on time.
You may need to answer questions which may seem personal like when did you join your job, since how many years you have been working in this company and how many jobs did you have in the previous years, that is do you job hop often or you are steady on your job. All this will help the lender understand your financial habits and commitments and as they enquire about your other loans and home expenses they are just trying to converse with you to understand you financial position and repayment capacity. They want to understand that you w ill be committed for loan term , if the case of joint home loan then they will consider both you financial background and qualifications as well as your parents financial history.
They are just waiting to understand and bet upon you and looking for that one element that you can repay the amount taken as loan, along with the interest amount, and that too on time! and you get your home loan approved in no time.
Labels:

Comments

Post a Comment

Popular posts from this blog

Debt Management for Personal Loans

Personal loans can offer individuals a way to have the funds for an array of uses. Some are necessary while others are for pure enjoyment. It is important that you consider the financial obligation that comes with personal loans. Too often, individuals access money quickly then struggle to repay it. If you don’t have a good budget in place you may find yourself unable to make the payments on your personal loan. An area where many individuals get into trouble with personal loans is debt consolidation. Within a year most people who use personal loans for this find themselves in even worse financial shape. This is because they have not altered their spending habits any. The result is they charge their credit cards up to the limit and now have those payments to make again as well as a personal loan payment. They may soon find they are drowning in the swimming pool of debt. Enrolling in a debt management plan may be a great alternative for you to help you meet your financial obligation...
1 comment
Read more

Used car loans tips

It is really a tough deal for loans of buying a used car (second hand) comparing to other types of loan in case of purchasing a new car. But if we look forward, it will make some possibilities also. The procedure is almost same like any other car loan facilities. The main difference in this kind of loan is that you can save cost, which you cannot do in other car loans. That is the biggest benefit you can have while getting used car loans. However, the problem is always there, so while you want to have used car loan facility you have to be aware of making your every step. Every step is vital otherwise you may be in bad credit reputation and big chances to be ripped off. Be positive in getting the source of used car financing and do shop around the whole market. Try to do the credit check to be assured that the given information is correct in your credit statement. After choosing the car you are going to purchase, look into the whole payment procedure of the purchase money. Always...
Post a Comment
Read more

What are Interest Only Home Loans – Simplified Facts on Interest Only Home Loans

What are interest only home loans.   ‘Interest only home loans’ means that the borrower ends up paying only the interest for some years and then the principle amount is added later for years.  This has risen as a better option for many who are not in position to pay large amounts as EMI’s in present years. Usually for homes bought in construction phase, you keep paying small amounts of interest. In this type of offer the lender gives money to the borrower and the purchase deed is completed. The borrower becomes the owner of the house. Every month he has to pay a small amount that is interest to the principle amount (loan amount). During later years, as    the construction progresses and the housing complex is ready   he has to pay the interest along with large sums of the principle amount. This option may be good for individuals who are highly qualified and have a new job and they know that over the years their salary is going to increase with their experience....
Post a Comment
Read more