Home Loan Rejection Reasons
Buying a house is not a child’s play, unless you are born with silver spoon in mouth. A common man has to invest their lifetime earnings to make his dream come true. It is quite a big long journey. You need to accumulate a decent amount for down payment, search number of properties and take a final call according to your budgetary constraints. Possessing a home is a big purchase of life and one cannot afford for a spot payment. Home finance has become an inevitable option for many to purchase a home but, with rigid regulations of home loan lenders, availing home loan turned to tough than searching your dream home. Let’s not be one among them who faces this painful rejection. Know the rejection reasons that are overlooked by the loan seekers and win a chance to get your loan approved easily.
Before you approach the home loan lender (after a wide research), you keep basic information like property documents, loan eligibility, and credit score perfect. When you have this vital information handy, you will have a positive approach towards loan conformation. During the process, surprisingly you may face a rejection from the lender which is very painful to hear. The culprit here is brand of the builder. Do you know that home loan banks take the history of the builder into consideration for approving the loan? You may face rejection from the lender either because bad history of builder or the builder has partnered with some specific banks. Caution at this juncture is to talk to your builder ahead and know if he has partnered with specific banks exclusively. This will keep you away from the prolonged procedure of loan processing and facing rejection.
You cannot be assured that home loan will be approved 100% even if you are buying from the reputed builder. The banks approve property and builders separately while approving home funding. Eligibility of each thing is scrutinized individually for the loan approval. You know that builder has reputed history in the field of construction still, your loan application faces rejection. Here is a reason why? The land you have chosen to purchase might be disputed or it is yet to get some regulatory clearances. Ensure that phase in which you want to buy the property has bank approval before moving ahead with the loan process.
Wrong records with bank
It is nothing wrong to live in a rented house before moving to own home. It is important that you have proof of period you stayed in house, something like rental agreement. This could be one big reason for your loan rejection if the previous resident in the home has any loan defaulting history. Make sure your produce the documents that shows the period of your residence in the home so that, bank will check and know your credit records are clear. Approval of home loan is very easy.