1. Will credit card "arrears" affect mortgage approval?
Unpaid credit card debt will not affect mortgage approval if it is within the interest-free repayment period, but non-performing credit card debt will not affect mortgage approval. Your credit record will result in the loan application not being approved.
Common bad credit that will affect personal housing loans mainly include the following:
1. Default on bank loans
Borrowers who have successfully obtained loans from banks , if you fail to repay the loan in full and on time as stipulated in the contract, your credit will be stained, and it will be difficult to apply for a home purchase loan again.
2. Overdue credit card payments
Using credit cards for consumption has become a living habit for everyone. However, if the credit card is overdue multiple times or the amount of overdue repayment is large, or personal Loans and student loans applied for during college are not repaid in time within the prescribed time limit, etc., which will affect personal mortgage loans and car loans.
3. Excessive debt
When banks approve loans, they will also inspect the borrower's debt situation. If the personal debt ratio is high and reaches more than 70% of personal income, the bank will Their repayment ability will be questioned, and it will be difficult to apply for a loan.
4. Being a guarantor will cause stains on the credit report
If the home buyer provides a guarantee for a third party, and the third party fails to repay the loan on time, it will also cause the guarantor's credit report to appear. stain.
5. Arrears in water, electricity and phone bills
Some cities also include the payment of water, electricity, phone bills and other fees in personal credit reports. If a person has long-term arrears in these fees, One or more items will cause a bad credit record and affect the loan.
Extended information:
The process of buying a house with a mortgage loan:
1. Select a property
If a home buyer wants to obtain a building mortgage service, This should be important to understand when choosing a property. When home buyers learn from advertisements or introductions from salespeople that mortgage loans are available for some projects, they should further confirm whether the properties developed and constructed by the developers are supported by banks to ensure the smooth acquisition of mortgage loans.
2. Loan application
After confirming that the property they choose is supported by a bank mortgage, the home buyer should learn from the bank or the bank's designated law firm about the bank's requirements for the home buyer to obtain a mortgage loan. Support regulations, prepare relevant legal documents, and fill out the "Mortgage Loan Application Form."
3. Sign a house purchase contract
The bank receives the legal documents related to the mortgage application submitted by the house buyer. After reviewing and confirming that the house buyer meets the conditions for the mortgage loan, the bank will issue the loan to the house buyer to approve the loan. Notice or mortgage commitment letter. Home buyers can sign a "Commercial Housing Pre-sale and Sales Contract" with the developer or its agent.
4. Sign a building mortgage contract
After signing the house purchase contract and obtaining the proof of payment, the buyer shall sign the "Mortgage Contract" with the developer and the bank with the relevant legal documents stipulated by the bank. The Building Mortgage Loan Contract specifies the loan amount, term, interest rate, repayment method and other rights and obligations.
5. Handle mortgage registration and insurance
House buyers, developers and banks should go to the real estate management department to handle mortgage registration and filing procedures with the "Building Mortgage Loan Contract" and the house purchase contract. For off-plan properties, mortgage changes should be registered after completion. Under normal circumstances, because the mortgage loan period is relatively long, banks require home buyers to apply for life and property insurance in order to prevent loan risks.