- For any of the salaried individuals, a home loan is thus considered to be a very important decision and a person takes every step cautiously while he secures a home loan. The borrower always looks for the best deals and the offers to avail of a home loan.
- 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!
- One can apply for a home loan online after going through all the information of your lender.
Also in a bid to “save” a few bucks, you realize that you also have been taken for a ride in the name of an attractive home loan offer. Therefore, thus 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 add
- A home loan or a mortgage is a fairly sophisticated product that the authorized lenders are thus supposed to dole out.
- Fraud lenders may have a fool-proof mechanism and they will also assess your creditworthiness by checking the CIBIL score for a home loan.
- Even when the application is approved, many checks and balances are taken in place to ensure that there are no loopholes in the lending process.
- There is also a lot of paperwork which is involved and some of the upfront processing fee, but the true lender is clear about such things. He makes the time and effort to explain the borrower every such clause.
- Therefore, if you come across an add, that promises you:
- Scanty paperwork, or
- Speedy disbursal then it should serve as the first sign of caution, no matter how attractive the terms of the loan seems in the advertisement.
- If any company is however either asking and insisting for a fee in advance to approve the loan.
- This can be a scam. An authorized lender would only ask for a loan processing fee after the loan application has been approved.
Unwilling to answer your questions
If the lender is unwilling to explain the terms of the loan, you should realize that it can be a scam. To avoid being a victim of the scam, you should take out the information about the lender company
Some of the salesmen of fraud companies may even use pressure tactics 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 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.