What to Do When Home Loan Application Gets Rejected?
Nov 14, 2017 Home Loan
Home loan is important for buying a home. But what if it gets rejected? Obviously, you will get disappointed and it will be a factor of great stress. Need not to worry. If a lender rejects your home loan application, it does not implies that you will never get a home loan. There are still various ways of following which you can avail home loan.
Here are some ways that you can follow if your home loan gets rejected. Read below to know.
Ask your lender: if your application for a home loan gets rejected, then do ask your lender the reason for rejection. Try to know from your lender that what went wrong and what you did not suffice lender’s eligibility criteria for the home loan. It will help you to solve the entire problem. Your lender must have studied your application thoroughly and the lender will be in a better position to tell you why the home loan application got rejected. Knowing the reasons might help you to apply for the home loan again.
Analyse the problem: the rejection letter from the lender only states a generic information, but as you get to know about the reasons for rejection, you need to go deep into the detail of the reasons. You should try to rectify the problems in your profile so that the loan application does not reject again.
Think about lowering the home loan amount: if the reason for the home loan rejection comes out to be your low income then it is better to decrease your home loan amount. This will help you with meeting bank’s prescribes terms and conditions. And it will also give lender confidence about your repayment capacity.
Check your credit report: if your CIBIL score is the reason behind the rejection, then first get your credit report from the lender which is chargeable. Then the study it proper;y and try to correct it. If you see something is wrong with the report like your name, then you can update the correct information online. Usually, it takes 40 to 60 days to get the information updated.
Try to repay your existing loan: your ongoing loans might become the reason for your home loan rejection. Actually, the EMI for your existing loans increases the Fixed-Obligation-to-Income ratio (FOIR). This implies that your fixed monthly expenses are comparatively higher than your monthly income. Hence before applying for a new loan, you should try to close your existing one or two loans especially those that are about to get complete.
Check the market value of the property: the home loan amount is based on the property’s market value. Most of the lenders, banks or financial institutions fund up to 80 percent of the value of the property. However, if you think that the lender has undervalued your property, then get it evaluated by yourself, get the technical report and submit it when you reapply the home loan.
Check the documents: if any of your crucial papers are missing then seek a legal advice to find out a solution for the missing document. All banks and financial institution are more than happy to help their customers as long as the customers are serious for their contracts because customers are very important for them and they surely do not want to lose them.
Here are some ways that you can follow if your home loan gets rejected. Read below to know.
Ask your lender: if your application for a home loan gets rejected, then do ask your lender the reason for rejection. Try to know from your lender that what went wrong and what you did not suffice lender’s eligibility criteria for the home loan. It will help you to solve the entire problem. Your lender must have studied your application thoroughly and the lender will be in a better position to tell you why the home loan application got rejected. Knowing the reasons might help you to apply for the home loan again.
Analyse the problem: the rejection letter from the lender only states a generic information, but as you get to know about the reasons for rejection, you need to go deep into the detail of the reasons. You should try to rectify the problems in your profile so that the loan application does not reject again.
Think about lowering the home loan amount: if the reason for the home loan rejection comes out to be your low income then it is better to decrease your home loan amount. This will help you with meeting bank’s prescribes terms and conditions. And it will also give lender confidence about your repayment capacity.
Check your credit report: if your CIBIL score is the reason behind the rejection, then first get your credit report from the lender which is chargeable. Then the study it proper;y and try to correct it. If you see something is wrong with the report like your name, then you can update the correct information online. Usually, it takes 40 to 60 days to get the information updated.
Try to repay your existing loan: your ongoing loans might become the reason for your home loan rejection. Actually, the EMI for your existing loans increases the Fixed-Obligation-to-Income ratio (FOIR). This implies that your fixed monthly expenses are comparatively higher than your monthly income. Hence before applying for a new loan, you should try to close your existing one or two loans especially those that are about to get complete.
Check the market value of the property: the home loan amount is based on the property’s market value. Most of the lenders, banks or financial institutions fund up to 80 percent of the value of the property. However, if you think that the lender has undervalued your property, then get it evaluated by yourself, get the technical report and submit it when you reapply the home loan.
Check the documents: if any of your crucial papers are missing then seek a legal advice to find out a solution for the missing document. All banks and financial institution are more than happy to help their customers as long as the customers are serious for their contracts because customers are very important for them and they surely do not want to lose them.
Looking for property portal?
Related Articles
-
Home Loan Benefits for Women and Senior Citizen
Mar 02, 2017 -
Why Borrowers do Not Prefer to Switch Loans?
Feb 18, 2019 -
-
See comments (0)
Write a comment
