There are several of the individuals who may ask you to become the guarantor for their home loan because of many other reasons and favors they did to you. But, your answer should be straight no in this regard. The main reason is this you can’t judge anyone’s credit worthiness in person, specifically when there are emotional values attached.
If the primary applicant defaults on his or her end, then the repayment of borrowed housing finance will become your responsibility. And, this home loan is a long term to deal with, which means you need to struggle for long and hard. In other words, you need to carry on with someone else’s financial responsibility.
Before, becoming guarantor for anyone’s loan, you should be seeing other related factors as well. This decision should be taken rationally. This decision is your and you don’t have to decide in order to return the favor to someone. You should be seeing the home loan interest rates applicable to this deal of loan. You should also consider the previous record of the individual and see whether he or she is able to repay the loan on time or not.
If we say in general, than you should only step in with the minimal risk with this loan agreement. This is important because if the primary loanee defaults, then, things will come on your head to deal. And, bank will ask you for the recovery of loan. On top of all, you should be staying careful regarding the documents of you, if you don’t wanna be the victim of document forgery, which is very common.
You should be keeping your documents safe from everyone. You must have heard about the numerous of forgery cases in which people do become the victim.
If the primary applicant defaults on his or her end, then the repayment of borrowed housing finance will become your responsibility. And, this home loan is a long term to deal with, which means you need to struggle for long and hard. In other words, you need to carry on with someone else’s financial responsibility.
Before, becoming guarantor for anyone’s loan, you should be seeing other related factors as well. This decision should be taken rationally. This decision is your and you don’t have to decide in order to return the favor to someone. You should be seeing the home loan interest rates applicable to this deal of loan. You should also consider the previous record of the individual and see whether he or she is able to repay the loan on time or not.
If we say in general, than you should only step in with the minimal risk with this loan agreement. This is important because if the primary loanee defaults, then, things will come on your head to deal. And, bank will ask you for the recovery of loan. On top of all, you should be staying careful regarding the documents of you, if you don’t wanna be the victim of document forgery, which is very common.
You should be keeping your documents safe from everyone. You must have heard about the numerous of forgery cases in which people do become the victim.
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