Recently, I found a friend of mine stuck in a genuine yet weird situation. After searching like hell, he finally decided to purchase a property matching most of his requirements. He even applied for a home loan and was only a few steps away from becoming the proud owner of that property. While everything was all set, he got a really good opportunity and changed his job unaware of the consequences. The bank from which he had applied the home loan got irked from the fact he didn’t bother to inform his bank about the changes.
So, if you are someone who is thinking of doing anything like this, then in this post we are going to list a few things that may cancel your home loan application at last minute.
Also Read: Things to do after Completion of Home Loan
Changing Jobs Frequently
First of all, changing jobs is something that not just gives a bad impression of your personality but also take you ten steps back while applying for a home loan. Switching a job during this crucial time is a shot that you are surely not going to get your home loan. Before approving your home loan, all the lending banks runs a check with the company that you have mentioned in your home loan application form. So, if in any case, the banker came to know that you have either switched or got fired from the company, your application will get cancelled.
Also Read: Advantages of Prepaying a Home Loan
Applying Another Loan
It is not good to take a loan in any form from any bank if you have already applied for a home loan. For instance, planning to buy a car for yourself while your home loan application is under process is definitely not a good idea. Another loan on your shoulder will add an unnecessary financial burden on you. Not just this, it will further increase your Debt-to-Income Ratio (DTI). If the bank finds out that you have requested another loan during the final check, they will find you as a potential risk and may not approve your home loan application.
Having a Second Thought
Thoughts are one of those things that cannot be controlled by any of us. This is why having a second thought either in the mind of buyer or seller can lead in the cancellation of the deal at the last minute. There are strong chances that the seller may get a better deal than yours. What if at the end of finalising your home, you get to know that there are some serious issues with the property. So, having a second thought may cancel the dream of buying your own home.
Also Read: What are the Tax Benefits of House Rent???