Top Home Loan Rejection Reasons and Solutions
Today, building a house or purchasing one has become pretty easy because of the facility of home loan in Gorakhpur. Banks are willing to extend home loans with tempting and lucrative offers. But before you dive in and build the house of your dreams, it is important to research anything and everything about home loan in Kushinagar, especially the top reasons for home loan rejection and the solutions to it. In this blog, Bhumi Finance takes you around this very concern. Hang tight till the very end!
Poor credit history and poor credit score
The first thing that a bank checks is your credit history and credit score. Your credit history is nothing but a timeline of the payments made by you in the form of EMIs etc. The EMIs that have been missed determine your credit score.
The more punctual you are about EMIs, the better your credit score will be. To prevent landing on due dates, you can keep a track of your credit score from time to time.
Miscellaneous debts
Banks usually get your exact real income by deducting the EMIs and other payments from your current in-hand income. This is also termed as debt ot income ration. If the ratio is high, then it show you in an incapable position of repaying the loan and results in a rejection of your loan application by the bank.
Make sure that your debt to income ration is low in order to get a home loan in Gorakhpur.
A guarantor to a defaulter
What if you are a guarantor to a defaulter? Well, chances are that the bank will reject your loan application. In order to make sure that you don’t end up becoming a guarantor to a defaultor, check the credit behaviour of the concerned person.
Switching jobs
Many people switch jobs either for a better pay or a better work environment. However, if you have applied for a home loan in Kushinagar, then it is recommened not to switch jobs frequently. As per the bank criteria, it is recommended to stick to a job for atleast three years. This increases your chances of getting your loan approved.
Applying close to the retirement age
A bank tends to take the age of the borrower into account when it comes to a home loan. Usually, people in the age groups 20 and 30 get a home loan in Jaunpur preferance. If you are close to your retirement age, then either they will ask you to pay a higher down payment or will reject your loan thinking that you will be incapable of repaying the loan. If you are applying close to your retirement age, then all you need to do is find a younger co-applicant. This will increases your chances of getting your home loan in Jaunpur approved.
When your signatures do not match
Signing the documents is important for getting the home loan in Gorakhpur approved. And if your signatures on any of the attached documents doesn’t match with the home loan in Ghazipur, then your applications will be rejected outrightly. Sign attentively.
When you don’t have the NOC on your previous loan
Not holding the No Objection Certificate (NOC) on your previous loan even after the case has got closed can make things toublesome for you. So, it’s important that you take NOC on closing a loan.
When you keep a troubled property as security
Before you keep a residential property as security, you must know that a lending bank won’t accept any and every type of residential property as security. They usually accept properties that has a stable price, a good resale vale or are usually in demand because of the location.
If you keep a property that has some layout or the title issue as your security, then the bank might reject your loan application. So, make sure that you keep a trusted builder’s property as a security when applying for home loan in Ghazipur.
There is no iota of doubt that the list of reasons behind your loan application rejection is a long one however, if you try to keep everything in order such as paying EMIs of ongoing loans fine, arranging the documentation carefully etc., you will for sure be sanctioned with your home loan in Ghazipur. Wish to apply? Reach out to us at https://bhumifinance.com/ for lucrative interest rates.