5 Unexpected Reasons For Home Loan Rejection

Posted by Nidhi Kohli on March 12th, 2021

Are you excited about your new home? A home loan is a great idea if you are looking out for a new home. It will help you get a perfect destination to stay that is luxurious and comfortable. A home is a big expense and you may not have enough funds to buy it with your own money. That is why a home loan has been designed so that you can meet the fund requirement and do the down payment on your own. In a home loan, the company offers 90% of the property price and the rest you need to bear. However, chances are very common that a home loan will get rejected if there is some reason. Due to the large amount requirement, the eligibility criteria set for a home loan is high. Following are the reasons that can be responsible to get your home loan application rejected, so work on it before you apply.

• Credit score: Did you check your credit score? If you find out that your credit score is not impressive, you need to work on it. It has the power to cancel your dream of getting a home. A credit score is the most essential aspect that can help you get a home loan approval and also reject it if needed. So, if you are having a bad credit score you need to work on it as it can be the reason for your home or personal loan rejection.
• Document: To get a home loan approval, you would need all the documents in place. It is important for you to gather all your personal as well as land agreements and loan property papers. It will help you get the process done easily and you will get approval without any hurdle. If you are keeping up all the documents in place, it will be useful for you to keep all your documents in place.
• Income: You are not liable for a home loan if your income is not as per eligibility. To meet the debt needs you should have a sufficient amount of income so that it is easy for you to pay off your debt without any default. A stable job and a good company will come into being that will prove that you are having some good job stability so that you are safe to be offered a loan. You can calculate the approximate EMI with the help of a home loan calculator.
• Unpaid telephone bills: It is a very small thing but will matter a lot at the time of your home loan approval. If you are having unpaid telephone bills it will work against you and you will end up getting a loan rejected. If you are looking out to pay your bills, you should do that before you apply for a home loan.
• Forgot to take NOC: If you have already been closed on your previous loan keeping in mind to low your financial liability and then increase your credit record before you apply for a home loan. This will be a really good idea if you implement it with some caution. If you at all forget to update the CIBIL score and get a NOC from the bank on an already closed loan, your home loan application may get rejected.

Wrapping up

Get the best home loan interest rate by keeping a good credit score and work on your credit record. Look for enough options so that it becomes easy for you to get hold of a loan easily.