Buying a home is almost in everyone's priority list at one or the point of time, however, seldom is the wish achievable without taking a home loan. But, a home loan is not granted that easily and the applicant has to undergo a vigorous process of background and financial checks before getting the required home loan.
Following are the five reasons that your home loan application may not get approved.
Did you get a new job:
A new job brings added responsibility and money but not a guarantee for home loan instantly. Home loan lenders often shy away from applicants who have not completed one year into job, while the clause becomes very crucial for private company employees. So those who switch jobs constantly or have resigned from existing job without any new offer on table should hold themselves back from applying for home loan during such periods.
If you have ignored any missed credit card repayment or personal loan EMI then its time to get things right. Home loan lenders always check an individual's CIBIL (The Credit Information Bureau of India Ltd.) credit score before approving a loan. Lower the score, lower are the chances to get a home loan.
Too much of debt:
The third crucial factor in deciding if one would get a loan or not is his overall debt condition. If one is already too much in debt then there are little chances of getting a home loan. An individual should always seek an NOC (No Objection Certificate) so as to make one's debt record clean.
Being a loan guarantor:
If one has signed to be a loan guarantor for a high amount then it is alarming to the lending companies and prevent them to be a loan guarantor.
Home property does not meet criteria:
A home loan application could be rejected if the property in question fails to be in clear title or is not approved by the municipal. An individual should always take help of banks in getting the right verification done before seeking a home loan. Banks charge a fee for such verifications.