Top 5 Reasons Why Your Home Loan Got Rejected

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Top 5 Reasons Why Your Home Loan Got Rejected
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• The rejection of a home loan can be certainly
  disappointing especially when you feel that your
  dream home is getting beyond your reach. Home
  loan plays an important role in owning the home
  of our dream for most of us. Being rejected for
  the home loan is one of the worries of any home
  buyers.

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• Home loan is a long-term credit product in
  which the loan amount is very high. So before
  sanctioning house loans, a lender satisfies
  himself that you are capable of repaying your
  housing loan without any difficulties in future.
  The processing and the home loan eligibility are
  quite a rigid process that many a time not
  fulfilling all the eligibility criteria may lead
  to rejection of a home loan.  

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• Understanding why you were declined for a home
  loan can be a valuable learning because it allows
  you to recognize your drawbacks and improve that
  particular point before applying for the next
  loan.

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Top 5 reasons for home loan rejection

• Low Credit Score
• Your credit score shows how disciplined you
  are in financial matters. Your each is every
  financial activity such as applying for a loan,
  paying EMI, loan application being rejected or
  approved, paying credit card bills etc are
  recorded by CIBIL.

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• Frequent Job Changing
• Working with the same employer for a long
  time proves your stability. It is a common
  practice of present generation to switch jobs
  frequently for a faster hike in income.

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• Loan Application Has Been Rejected Before
• You might have done all the possible
  preparation before applying for a home loan and
  still, it got rejected because your builder or
  the property is not approved by the bank.

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• Your Residential Address Is On the Defaulter List
• If you share the roof with someone who has
  defaulted in paying huge loans or credit card
  bills than your loan application is likely to be
  rejected. When a borrower defaults in paying a
  huge amount of loan this has been reported to
  CIBIL and banks probably will have the address
  stored in their defaulters' database.

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• Property-Related Issues  
• The sanctioning of your loan also depends on
  the property which you are willing to buy. If the
  property is not adhering to the guidelines set by
  Government or the local authorities such as
  municipality or panchayat than lenders generally
  rejects loan application for such properties.

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• so, these are the top 5 reasons of getting a home
  loan application being rejected. Beyond these
  five reasons, there can be many other reasons for
  which a home loan can get rejected. Some of those
  reasons are being a loan guarantor to a
  defaulter, too many previous loans, inadequate
  income, builder not approved by the bank
  co-applicant has a low CIBIL score and so on.

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• Owning a property is no more a tough task for
  many of us because of Home Loans. But knowing all
  the probable reasons for getting the home loan
  rejected will make you cautious. Home loan
  rejection will not only let all your preparations
  go in vain but the next loan sanctioning will
  also become difficult. So it is highly advisable
  to have a proper homework before applying for a
  home loan so that you don't need to face a
  rejection.