Once your home loan application has been sent in, you’re all done, right? Not quite, sadly. You may have done everything in your power to get the application in, but that doesn’t necessarily mean it will be accepted.
We have a couple of warnings to heed while your home loan application is being processed. It is important that you are aware of what can happen during this time.
Let’s get started, shall we?
Before that, check out https://www.roshi.sg/home-loans/ for more information.
Warning #1 – Don’t Slack Off with Your Budgeting
You will have made a budget to determine that you can easily keep up with the home loan repayments as they come. A commonly made mistake is to relax one’s budget after paying the deposit. Getting rid of the looming deposit cost makes the repayments seem small. Your repayments should still not be taken lightly.
It is imperative that you continue monitoring your budget and savings even before your application has been approved. Doing so will ensure that you keep up with it once you get started as well. The last thing you want is to have to pay back double interest because you couldn’t keep up with the first few repayments!
Warning #2 – Don’t Let Your Credit Score Drop
Another mistake that some people make is to try and up their initial savings in preparation for the home loan by ignoring another loan repayment. It may seem like no big deal to do that once or twice, but there is always the chance of having your credit score damaged from this. (Not to mention that causes you to end up paying more interest on the loan)
If your credit score drops during the processing of your home loan application, the lender may see that as a red flag and reject your application completely. Not only does this mean you will need to look for another home loan option, but it also means you’ve lost the application fee that you included with the application.
At the end of the day, simply make sure you have some spare savings and don’t commit to a loan that you are incapable of paying back easily. That way if something goes wrong, you still have some backup funds to recover with.
Also find out more about personal loans in Singapore.
Happy house hunting!