For any of the salaried individual, a home loan is thus considered to be a very important decision and a person thus takes each and every step cautiously while he secures a home loan. The borrower always looks for the best deals and the offers in order to avail a home loan.
In this search, the people go on the internet and then search for various deals. In this bid, they however also come across various imposters, promising the lucrative offers and home loans.
Many of the people, in the bid to get the best, thus they get easily duped by the imposters and it thus can be devastating to state the least!
On the internet, the messages are thus they even replete with all the coordinates of the contact person who is thus more often than not a super salesman!
Also in a bid to “save” a few bucks, you also realize that you also have been taken for a ride in the name of an attractive home loan offer. Therefore, thus in order to save the borrower from kind of such traps, this article tells us about some of the pointers that should serve as red flags for the borrower, if you are in the pursuit of a home loan.
An unknown business with a flashy newspaper/ internet ad
A home loan or a mortgage is a fairly sophisticated product that the authorized lenders are thus supposed to dole out. These lenders thus have a fool-proof mechanism in place and they will also assess your credit worthiness by checking the CIBIL score and the CIBIL report firstly before approving the loan application. Even when the application is approved, many checks and balances are in thus taken in place to ensure that there are thus no loopholes in the lending process.
There is also a lot of paperwork which is involved and some of the upfront processing fee, but a lender who has a reputation is clear about such things and thus makes the time and the effort in order to explain the borrower every such clause. Therefore, if you come across an ad, that thus promises you scanty paperwork or either speedy disbursal, then it should serve as the first sign of caution, no matter how much attractive the terms of the loan seems in the advertisement.
If any company is however either asking and insisting for a fee in advance in order to approve the loan. This can thus be a scam. An authorized lender would only ask for a loan processing fee after the loan application has been approved.
Unwilling to answer tough questions
If any company representative is, however, unwilling to explain the terms of the so-called “attractive loan” or it squirms the moment the borrower starts asking tough questions, then you should realize that it is a scam.
Some of the salesmen of fraud companies may even use pressure tactics in order to get the borrower to sign the documents without giving the borrower an adequate chance to go through the documents. The borrower should identify that it is a scam.
Asking for personal or financial information online
In this hyper-connected world, it does not take much effort, money and time, to create an authentic looking webpage that is in a pursuit to extract sensitive financial or personal information. Any webpage that however claims to be “approved” by the government or a by a reputed lender and is thus asking the borrower to extract sensitive financial or personal information should serve as a red alert to you. This is because, neither any of the authorized lender or neither the government has the right to ask for any such information online that may cause you any monetary loss.
Thus if the borrower has a good credit history and his CIBIL score is well above 750, then there is no dearth of the reputed lenders who would vie for the borrower’s attention and can be more than willing to give the borrower a home loan.