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Home Loan Modifications - The Most Common and Costly Mistakes

When you are applying for a home loan modification then it is obvious that you are not prospering, to quote an understatement. Nothing can be worse than a rejection of your plea, to top the pile of already increasing worries. In such a situation it is very important to very carefully go about the process of applying for the home loan modification and especially in the context of the highly competitive US housing market. Here are few mistakes that you can be aware of and thus avoid to prevent that dreaded refusal of the much needed mortgage loan modification.
Not obtaining the complete details
It usually happens that the borrowers applying for a home loan modification often ignore many details such the cost and fees involved along with info on the revised interest rates. Not being aware of these important points in the modified agreement can put you back to square one.
Excessive credit in terms of cards
To impress through your application you must portray great financial stability. Paying all major debts before applying should do this. Therefore, if you have long pending credit card bills showing on your application then there is very strong chance that it may not pass.
Concealing facts
Honesty is the key when seeking loan modification approval. Be open and true about your financial conditions no matter how bad they are. You never know, the lender might feel compassionately towards your needs and may be glad to help you. Also lying on the official document is a crime of fraud punishable under law.
Late or Disrupted payment records
There are many applicants who lose out because the payment of the bills are not in a regular flow and thus are disordered. This raises a question on your financial stability and the bank might as well give the modification to someone who is sincere in his/her payments and can be trusted.
Huge payments and commitments before applying for modification
There is an income to debt ratio that plays a very significant role in the decision making process of the lender. So if you are planning to buy an expensive set of furniture or a new car, do so after the modification plan is approved as this might the change the magic ratio for the worse. 
Not being fully equipped with the loan modification information
When going on the table, you must not appear blank. You must do your homework before hand so that you are well educated about how the whole process works. This also helps to boost confidence and facilitates in finding a way out of tight situations.
These are just a few of the many common mistakes that can cost you dearly. So when going in for a loan modification for your beloved property, make sure that you have done your research, and avoid errors at all costs.

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