A denial is painful, especially when it is about your dream home. A home is a valuable possession for individuals. However, owing to the high value of a home, it is often purchased with the help of a home loan. A home loan is one of the best ways to arrange a huge sum of money within a short span of time. In fact, some properties ranging in crores are also purchased with a home loan. A home loan is not easily available due to the high cost involved in it. Therefore, in order to get a home loan approval, you need to make sure that you meet the eligibility criteria to get a home loan. You should also use a home loan EMI calculator to compare the different interest rates and EMI. There are a few very common reasons which lead to a rejection of a home loan application. Being aware of these reasons can save you from a rejected loan.
● A low credit score: A low credit score leads to a home loan being rejected. This is because a low credit score signifies default, late payment, and missed payments. If you did not have a clean track record in debt repayment in the past, a loan provider will not trust you with a new home loan. A home loan will be rejected if your credit score is not talking well about your financial history and activities in the past. It is important to have a clean track record for past debt, in order to get a home loan.
● Low income leads to home loan rejection: When you apply for a home loan, your financial health and income are screened. If the loan provider finds that your income is not sufficient enough to take the responsibility of a home loan for a good number of years, you will find your application getting rejected. With a low income you can manage debts like a personal loan or credit card, but not a high-value loan like a home loan.
● Incomplete application: If you have completed your home loan application with all the necessary documents, your home loan application will get rejected. You need to complete your application and attach all the original copies of supporting documents. Do not miss out on any information or documents as it will straight away reject your home loan application.
Wrapping up
When you take a home loan, you must use a home loan EMI calculator. It helps you to decide the right loan amount, the suitable EMI for every month, and definitely get a low-cost home loan.
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