Owning a house is very important as one needs to have his/her roof over his/her head. It has important as food and water have. It is also said that the three basic requirements in this world are food, water, and shelter. Home is the place that everyone dreams of being their own. But sometimes people don’t have enough funds to get their own home.
So, they opt for a home loan, which is a very cumbersome process. It needs a lot of documents, and also has a lot of eligibility criteria. But one cannot always fulfill the requirements of the banks, which leads to the rejection of your loan application. So read the following points before filing a loan application so that your home loan does not get rejected:
- Avoid the Incognito Mode: Avoid hiding any kind of shade that is related to your identity! See to it that you are transparent to your bank no matter what! Every bank does a very harsh background check on each and every customer. So, if they find any black thread in your check then there is no chance that you are going to get a loan. Either don’t do any shady business (ideally) or have a good reason behind it. After the scams, the PNB home loan has become strict towards its customers.
- Not verifying your credit score: it is very important to verify your credit score as it shows your credit history. As it gives a bit of assurance to the lender that the borrower will repay his/her loan or not. Banks are very much strict about your credit history. If they see any default in your history, they will reject your application. So, clear your past dues before applying for the new home loan. Also if your credit score is less than 750, then your home loan interest rates will be very much high.
- Submitting direct applications to multiple lenders: submitting applications to multiple lenders at the same time can affect your credit score as they will start making a check on your credit history and it sometimes it can be a bit hard. So, instead of sending direct applications to the lenders, you can first visit different financial websites and check your eligibility. There you can see that in which banks or nbfc’s you are eligible. Also, these websites don’t affect the credit score of a person.
- Unstable employment: if you have an unstable employment history, then there are great chances that your loan might be rejected as the bank will doubt your repayment capacity.
Conclusion: so, these are some points that can lead to the rejection of your home loan. Try avoiding the cancellation due to these points.