If you thought finding a home is tough then getting your home loan approved could be tad bit tougher. You will find that a slight carelessness from your end can put your application in the pile of rejected forms. Here are some reasons which can mar your chances of getting a home loan approval…
- Poor credit history: Banks will verify your credit history before they sanction your home loan request. If you have been a defaulter in paying your credit card bills, then the bank will hesitate to approve your loan application. So, make sure that you pay your bills in time.
- More loans as against less income: If you have a number of loans, then it is obvious that your disposable income will be reduced. This can directly have an impact on your loan repayment capacity. Banks can take into account this fact and your loan application may get rejected.
- Previous rejection of loan application: If your loan application was rejected earlier by a particular bank, then chances are that your loan application will get rejected by other banks as well. This is because the earlier rejection points out that you could not comply with the requirements due to which the bank rejected your application.
- Frequent changing of job: If you do not have a stable job or a good salary, then too, the chances of your home loan rejection are high. If you are into the habit of switching jobs regularly, in that case as well, you might have to face issues regarding home loan approval.
- Guarantor problems: If you are a guarantor for a relative or an acquaintance who is repaying a loan, then your chances of getting a loan can further become less. This is because when you become a guarantor, you take the responsibility of the loan that your friend or relative has taken. So, if you are a guarantor for a defaulter then your chances of getting a home loan becomes bleak.
- No verification: For your loan to get approved, you have to undergo the verification procedure. So, make sure that you give a contact number where you are available all the time. This is because if you miss out on the verification a couple of times, then your bank may not approve your home loan.
- Inconsistency in signature: Signature mismatch can be another common reason for loan rejection. You will have to sign a number of forms and documents. Make sure that you have the same signature on all the documents. If required, practice your signature a couple of times before you sign the various documents.
- Retirement age also matters: Last but not the least, people who are approaching their retirement age can have problems getting a home loan. Obviously, the bank will feel that your repayment capacity has been reduced and you might not be able to repay the loan. So, planning for a home loan in your heydays is advisable.
In a nutshell
When it comes to home loan approvals, a number of minute things can hamper your chances of success. While a good CIBIL score is the primary requirement, there are a number of other criteria that needs to be fulfilled by the applicant. So, make sure that you are bang on target in all these areas, if you do not wish to face home loan rejections.