The home loan applications of many borrowers are rejected due to many reasons.
Sometimes, they don’t have the creditworthiness, while sometimes; it is their credit score that is poor and much more.
You may have been planning to avail the home loan facility for long, but when you do that, your request may be turned out.
What could be the reasons?
What factors do you need to consider avoiding the rejection of an ensuing home loan calculation?
Know more in this post!
- Your cibil score
Your credit score denotes your creditworthiness. It is the mirror of it. It showcases if you can repay the loan on time or not. Not being aware of your cibil score may see your home loan application being rejected. If your credit score is 750 or more, then you may get the approval of the housing loan application. Hence, when you have home finance to apply for, you should ensure having a robust credit score. You can maintain a healthy cibil score by repaying your ongoing loan EMIs and other debts on time.
- Your age does matter
If you are young, then your home loan application may be approved quickly. It may also mean that you can get the approval for a large amount over a longer tenure. You may also be given approval at a lower rate of interest. It is because you have many workable years left. On the other hand, if you are nearing your retirement, then your loan application may not be approved. It is because when lenders see you having less workable years to repay the loan, it assumes that you may default. Therefore, your age does play a vital role in getting your home application approved or rejected.
- When you have some unpaid dues
If you have some ongoing loans, and if you have not been paying your dues on time, then your home loan application may be rejected. To avoid your home loan application rejected, you should ensure never to miss any deadline. You should be punctual with your dues. Lenders consider this as a vital eligibility parameter while processing the loan application.
- If you are living on the address of a defaulter
You may have moved to an address that was earlier occupied by someone who defaulted on the loan or higher credit card outstanding. If the address where such a defaulter lived is in the records of the bank you are applying for the loan with, then your application may be rejected. As a result, the prospects of your home loan application getting approved may become bleak.
- When you keep changing jobs often
It is the habit of many borrowers to keep changing jobs to gain some increase in their Salaries. This may be beneficial for you, but it may not be seen as good practice by your lender. Hence, if you are applying for a housing loan, then it should be your focus to ensure that you maintain a stable employment history. Lenders will consider you being home loan ready if you are consistently employed for 3 years or more.
- When you have many loan rejections in your home
If you applied for any loan previously and if it was denied, then you may not be in the good books of the lender. In this case, your loan application may not be approved. If there are rejections in your name, then you should wait for 6-12 months before applying again.
- When there are unauthorized entries in your credit report
If there are some incorrect entries in your cibil report, then lenders may not green-signal your housing finance request. Thus, before applying for the home loan, you should ensure to resolve all in advance. It will help you keep the credit score healthy and aid you in getting the loan application sanctioned.
If you can consider the discussed aspects, then it may help you get the approval for the home loan, and you may move into your own home fast.