The mortgage or home loan application process is a one that involves many questions and mountain of documents to fill. Being honest with your lender is one way through which you could ease the process. However, some of the details that you give your lender could raise some red flags and make the process more complicated. Additionally, some of these details will make them offer you the loan at a high-interest rate. Here are three things you should avoid mentioning to your mortgage or home loan lender to help streamline the process.
The House Needs Many Repairs Before You Move In
Ideally, you will need to have a home inspector visit the home that you intend to buy on a mortgage or when applying for a home loan before you move in. However, for as much as it is possible, do not let your lender get information about the state of your home before giving you the loan. In case they find out that the house needs much work before you move in, they will freak out and fear that you will not be in a position to pay the home loan you are requesting to be lend.
You Need Extra Insurance
When buying the home, you may need insurance coverage to cover you in case of issues such as floods or crime. However, ensure that you avoid raising questions about insurance covers before your lenders. This shows them that the house you intend to purchase with the home loan is in a high-risk area. It is, therefore, risky to give you the loan since you might default it after you have had a calamity in your home. This way, they underwrite you with a more intense default lens. Therefore, ensure that you avoid talks about extra insurance when talking with your lenders.
You Are Not Done With All Down Payment Details
Down payment is one of the details that lenders pay much attention to when giving a mortgage or considering refinancing home loans Australia. For this reason, they are keen to look for any chances of fraud depending on the way that you handle your down payment. Having issues of down payment also prove to the lenders that they cannot trust you with their money. Therefore, ensure that you prepare all the documents concerning your down payment in time and give them to the lenders. This makes them more confidence in you as they lend you the loan. You are also likely to get the loan at a lower interest rate, thus making it easier and more convenient for you to repay.
Though being an open book is a quality that could help your social life, it could cost you a lot if you are trying to make a deal with a home loan lender or when you are refinancing home loans Australia. Some of the details that you give the lender could make them have second thoughts on offering you the loan. Avoid bringing up the topics above when getting a mortgage or home loan to make the process easier.