Know the Right Time to Apply for a Home Loan

Timing plays a pivotal role when you apply for home loans. It’s not just the market conditions when you think to apply for a loan on the right time. It’s very important for a borrower to understand the “home loan business cycle”.

couple in  front of one-family house in modern residential area

What is a Home Loan Business Cycle?

  • The starting of the month is looked upon for setting up the new loans.
  • The middle month requires document gathering and making loans ready for the end of the month.
  • The end month is chaotic because you rush to close your loans as soon as possible.

The apt time duration to borrow a loan application is starting of the month. This is the time- period when lenders are hungry for a new business deal. They look forward for a great business in the beginning. You will figure out that the loan officers are eager to serve you; they respond to your query fast, attend all your calls, and review your loan carefully.

Basically, the worst time to apply for a loan is the last week of the month.  The loan officers are busy in closing loans at a full swing. They want to close all the loans once they reach their monthly targets and loans.

The bottom mantra is apply for loans in the first few days of the month. Now, this doesn’t mean that you can never apply for a home loan at the end of the month. It’s just that you will not get the special attention of your lenders if you are too late. Well, there are few more tips that would save you from all the “IGNORANCE”!

1.     Get organised

Your lender will ask you for all your financial documents. Make sure, all your documents are easily available.

2.     Be ready with a complete application

If you are ready with the necessary documents for a home loan, your loan will pass easily without any further delay.

3.     Give a complete explanation

Give a complete explanation and detailed information in your application. Explain all your quirks in the financial history, i.e. ,past derogatory credit and employments.

4.     Anticipate delays

Remember to indulge “buffer days” in the rate lock. Make sure, you don’t lose your rate over any hindrance in time- period.

I hope, now you are clear with the doubts regarding the correct time duration for applying for home loans. It’s better learn than to repent later!