Do not change job
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 change of jobs is viewed suspiciously by lenders as it implies job instability. Your mortgage request can be rejected on account of this as lender place a high value on the later. You need to be employed at one place for certain time duration in order to be eligible for the home loan. This period can range anywhere from one to three years.
You should not take your address lightly
Do not close an old loan account
While it is a known fact that a bad credit behavior hurts your Cibil score, you must also know that some good credit behaviors can also have a negative impact on it. And 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 time, 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.
The author is Co-Founder & Director, CreditVidya.