Hello Urvashi. Rahim has shared some reasons for rejection of home loan. I would like to add to those as he has missed out on a few of them. I took a home loan and it got rejected. So, I inquired from the bank loan officer about the reasons behind my rejection. One o the reasons he told me was the frequent job switches I made. I will tell you everything in detail below.
Reasons why a Home Loan is Denied?
Here are some more reasons why home loan applications get rejected:
Frequent Job Switches: It is a common practise to change jobs frequently for better opportunities. However, the frequent change develops a sense of uncertainity in the lender’s mind regarding the repayment ability.
Employer’s Proifle: Even if you have a good credit score, your application can be rejected if the nature of your employment and employer don’t seem credible to the lender.
Property Problems: It might be possible that the property you have picked does not adhere to the guidelines prescribed by the respective authorities.
So, that is all I have to say. I hope you are now aware of the home loan rejected reason.
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Hey pal,
Getting a home loan is one of the critical steps in purchasing a property. Once, you collect your documents, research the interest rate and read the terms and conditions set by the lender. You want your loan application to be approved, sometimes that doesn't happen and you face loan rejection reasons.
Apply for home loan with NoBroker to get best deals and fast loan disbursal Why home loans are rejected?Banks and financial institutions have their eligibility criteria for availing of a home loan. There are many possible reasons for rejection of home loan faced by an applicant. I will mention the most common ones.
If you are exploring home loan options and looking for best deals, check out NoBroker Home Loan services
BAD CREDIT SCORE Your CIBIL score shows your track record of repayment and total creditworthiness. If you have abad credit score, lenders will question your ability to pay back the loan amount.
ERROR IN CREDIT REPORT
If there are any errors found in your credit report, despite having a decent credit score. Your application will be rejected. You should get all the roots rectified as soon as you spot them.
LOANS GUARANTEED BY YOU If you are a guarantor in a loan taken by your friends or family, it will impact your credit score if they don't pay on time.DEBT
Another home credit loan rejection criteria is prevailing debt. If you have high debt due to numerous loans and high-interest loans.
DOCUMENTATION If the documents that you are submitting for the loan are incomplete or lack originality. The lender will not accept your application. AGE: Most banks have a minimum and maximum age that the applicant must fall between. I think this is one of HDFC home loan rejection criteria and ICICI home loan criteria amongst other banks.This is all from my end on Loan rejection reasons.
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What are Reasons for Rejection of Home Loan ?
Urvashi
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2022-06-20T20:13:20+00:00 2025-02-17T16:09:23+00:00Comment
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