29 March 2017
There are several formalities need to be fulfilled, including the loan application. It is difficult to get all the information at the very first time. You should be very alert about the home loan procedure before applying it. There are numerous reasons why your home loans are declined.
Has your home loan paper gotten rejected from the bank? Each loan scheme has policies. Every bank has different home loan policies; you need to have a closer look of it. You should take the advice of home loan experts. They know the details of the procedure and can guide you properly to apply for a home loan. Here, I am explaining some most common reasons for home loan rejection.
The Residential Address in the Defaulter List
If any of your family members living at the same address failed to give home loan, then your home loan application may get into rejection. The credit card dues and other loan defaulters can lead your home loan to a rejection. The banks have your address database with them.
Failed to pay your Dues on time
Late bank due payments, accumulated credit card dues, huge pending debts, are the main reason of home loan application get rejected. The CIBL update all your data. Make sure to clear all dues before you apply for a home loan. To avoid such situations keep a track of your bills and records.
If you Have Other Debts : Not Yet Cleared
If you have endless dues without any minimum income, then you will not get a home loan. If another loan will make it difficult to repay the loan amount, this leads the home loan rejection.
If you are a Loan Guarantor to a Defaulter
Your loan may get rejected if you are the guarantor of a defaulter. You should make sure before signing the dotted lines, that the person has the capability to pay the loan. This can lead your home loan application to get into rejection.
Age is A factor for a Loan Approval
If you are approaching to your retirement age, then your loan application may get the rejection. The banks will not approve the loan because you will not have the capability of paying the loan after a certain age as there is no source of income.
Frequently Changing of Job Can Lead the Loan Rejection
If you are a job hopper, then it will effect on your loan application. Banks pay more attention on the job stability. Job stability is the important factor to get the loan approved by the bank.
If your Loan Application Being Rejected in the Past
When your home loan gets rejected before, then it will directly go to the CIBIL report. It will give you good credit score depending on your dues and clearance. If you get an opportunity of loan borrowing from a bank then there is the better chance you can get the loan approved easily. Poor CIBIL score can lead the loan rejection.
Builder Not Approved by the Bank or Lack of Guarantee in Project Completion
This is one of the most common factors for the rejection of home loan applications. It is critical for builders to understand, which bank can provide loan to the buyers for their projects, as all banks do not provide loan against the property builder. You may have to go to a different bank or choose the financier who tied up with the builders.
Policy Guidelines of The Property need clearance
If there is any errors in the title and plan layouts of the property, your loan application may get rejected. Choose a trusted and reliable builder, so that your loan gets approved easily. The unstable prices of the property can also another factor for the rejection of home loan.
Poor Credit Score Can Lead your Home Loan to Void
Credit score is very important to get a home loan. By paying credit card dues on time and clearing all other dues, you can get a good credit score. A poor credit score will lead you to rejection. Your home loan application may get declined for this reason.
File Income Tax & Failed to Pay Taxes Regularly
This may lead to home loan rejection. It is very important to fill up the Form 16. You have to track the record of tax returns. Irregular tax payment can lead your home application to rejection. Two years before applying the home loan, make sure to clear the tax return.
The above factors are responsible for the home loan application rejection. It is important to correct all the errors and make sure to clear all the dues before the applying the home loan. Credit score increment is essential to get the home loan approval.