Why should you get a credit report before buying a home?
When booking properties or when booking a property, it is necessary that you have enough money in your settlement. These liquid assets can be in the form of bank balances or investments in shares or investment funds. If you do not have credit report liquidity at the time of buying the property, then you should be sure to borrow money from your friends and relatives or with the credit system. Housing loan is the main source of financing for home buying in India. Thus, in advance, it is necessary for you to assess your ability to get a home loan.
CIB before paying the credit report home loan.
CIBIL (Credit Information Bureau of India) was a pioneer of CIB, so these reports of CIB are also called CIBIL. The government created the Credit Information Company Act, under which four CIBs – CIBIL, Equifax, CRIF High Mark, and Experian were established.
Based on the details provided by financial institutions and credit transactions of their clients, CIBs keep records of all the borrowers who had borrowed from the financial system.
Data reported by financial institutions is collected by the CIB and made available in the form of reports and scores. The details of all your credit transactions, including credit card transactions, loans and credit inquiries, are reported by these financial institutions and these are reflected in a credit report from the offices.
Because the lender will always get the details of your CIB credit profile, it is in your interest to know in advance, your detail credit report will be available to the prospective lender. This will help you to find out whether you will be able to get a home loan or not.
For example, people with more than 750 CIIBL scores have a better chance of getting a home loan than those with low scores.
Depending on your credit score and credit history, prospective lenders may have several reasons to refuse the home loan application. Occasionally, this may be due to default on credit card or service of other loans, which affect the credit score.
It can also be due to someone else’s negative transaction, which is mistakenly involved in your profile because there is a similarity in areas such as title, name, city, etc.
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