Top 5 Reasons behind Your Home Loan getting Rejected
Buying a home is a dream for many individuals; however, obtaining a home loan is not as easy as it appears on TV commercials. When you look for a new home, you need a good finance backup. It helps in buying a home, irrespective of your needs. The process of seeking a home loan isn’t a cake walk. Finance lending companies consider multiple things while offering home loans. From documentation to credit score everything is scrutinized. Similar, at your end too, you will check the interest rates offered by different banks. And how you can pay off the loan accordingly.
If you are worried about obtaining a home loan in Delhi NCR, then Loan Kumar is for your assistance offering financial advice and home loan on lowest interest rates. With Loan Kumar, there is the least chance of getting loan rejected. However, you will need to fulfil all the aspects of the home loan process.
Here is a list of certain factors which you should consider in order to avoid any rejection for obtaining a home loan application:
Home loans involve a very big amount of money which is given by banks on a long term basis. If you are below 21 years or above 55 years of age, the banks usually have doubts about your re-payment capabilities and do not process your loan application.
Frequent job changes are considered as a red flag by many financial institutions that process applications for Loan against property in Delhi NCR. Frequent job changes indicate an unstable financial background and mental instability, both of which are enough reason for a bank to reject your application
The FOIR stands for Fixed-Obligation-to-Income ratio which is a ratio between your take-home salaries to the total payable debts of yours including the applied loan. If this ratio is above 50, your chances of getting a home loan are very bleak. Even if you have excellent pay package and credit score.
Bad Credit History of Your Co-Borrower
If you are applying for a home loan jointly, the credit history, income and FOIR data of both the partners are checked and the bad credit score or credit history of your co-borrower can be the reason behind your loan rejection, even if one applicant has an excellent record.
Several Applications at a Time
Many people in their desperation to obtain a home loan apply to many banks and financial institutions. Hoping that one of the applications will be materialized. This is usually considered as credit hungry behaviour by the credit bureaus. Often devalues the overall credit score of an individual leading to loan rejection. The scenario becomes really ugly and difficult to escape. When the rejected loan proposal further devalues their credit score which becomes difficult to repair.
With numerous incentives from the government, obtaining a home loan in India has become really easier. Even if you have some abnormalities in your financial history, expert professionals from Loan Kumar can help you to rectify those mistakes and obtain a low-interest home loan for your dream home.