Many small loans have been settled, will it affect the mortgage approval?
At present, there are many small loan products on the market. Although the interest rate of such loans is much higher than that of bank loans, the approval speed is fast, the application is convenient, and the lending speed is not comparable to that of banks. Banks don't like users who apply for mortgage loans to have more small loans on credit information, because this may mean that users' debt ratio is relatively high and their credit degree may not be very good.
If the lender's personal credit report shows that there are many small loan records, but these small loan records have been paid off and never overdue, it will have no effect to apply for a mortgage loan in the bank. If it happens that the monthly income of the lender is good and there are certain assets in his name, then the bank will feel that the lender has sufficient repayment ability and it is easier to approve the loan.
If the lender's personal credit report shows that there are many small loan records, although they have been paid off, but there are some overdue situations, then the bank may question the lender's credit degree, thus reducing the impression on the lender. If the monthly income of the lender is not too high, then the possibility of mortgage approval is relatively small.
Generally speaking, as long as the lender has not overdue before and has paid off the small loan, it has little impact on mortgage approval.
The above is the answer to "Have many small loans been settled and affected the mortgage approval?" The answer to the question hopes to help you!