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Common Reasons Why Your Home Loan Was Rejected

Common Reasons Why Your Home Loan Was Rejected Buying Guide

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Posted on- 24 Oct 2021

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Common reasons why your homeloan application may get rejected:

Poor credit score: If you have defaulted or delayed on the last couple of payments, it could raise suspicion on your paying power;

Insecure employment: Banks insist on job stability, which translates into a regular source of income to service EMI commitments;

Inadequate income: Insufficient income can be a good reason for banks to stall your loan application as it raises questions on sustained EMI payments;

Full disclosure: Lenders backcheck all the details on an application. Any erroneous information can be a cause for concern;
Failure to obtain 'No Dues Certificate' from previous lenders: This can also lead to loan rejection;

Debt: If you already have a loan or any other debt, your application can come under the scanner. When your debt-to-income ratio is relatively high, you can stumble on paying off EMIS;

Age: If you are newly employed, you may come under the scanner. On the other side, if you are approaching retirement, your application may not be accepted;

An issue with the property: If the said property has not adhered to RERA guidelines or if the development years (age) of the building is questionable, you may face troubles in getting your loan sanctioned.

Source:Times of india

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