What to do if your Home Loan gets Rejected?
Not sure how this could happen to you? Stupefied? Well, don’t be. Financial experts state that when your application reads “No,” it just means that you have to “Try Again.” Don’t get dejected. Your dream home is only a few steps away.
But, the measures you take are crucial. What are they? Read on to find the right guidelines to be followed when your home loan doesn’t meet with approval.
#1: It’s all in the details
The letter issued by the home loan center stating that your loan application doesn’t meet the required criteria is your first step. You may initially be emotional to focus on the details. So, try to read it after, you become calm.
Read through the letter more than once, to find the reason for the rejection. If there is no specified cause, contact the bank officials. Don’t hesitate in asking questions till you get a clear explanation as to the reason. This is of immense help when you reapply for the home loan.
#2: Try Reducing the Loan Amount
If the lender feels that the amount you have applied is out of proportion to your income, then the bank may reject your application. By reducing the loan amount, you improve the chances of approval.
#3: Finish off your other Existing Loans
If you have already availed many loans, then the chances of your loan getting approved fall considerably. This is because the lender believes that your hands are pretty full when making monthly payments and you can’t afford yet another loan.
Paying off a couple of small loans will help you improve your chances.
#4: Boost your Credit Score
One primary criterion that lenders consider when approving home loans is your CIBIL score. A low score means that your application is sure to get rejected.
While you can’t boost your credit score overnight, there are several measures you can take to improve your score gradually. So begin damage control without delay and approach your lender once again your score improves.
#5: Irregularities in the Evaluation of your Security
Different lenders have varying policies when it comes to evaluating the security you provide. So, if you feel that your property is being undervalued, check with another home loan center.
#6: Try to make it Work
The main factors that influence home loan EMI are the loan amount, tenure and the rate of interest. So, if you feel that the EMI is more, try to reduce it by looking for another property that is priced lesser. Be open-minded and keep your options open.
The key here is to understand the bank’s eligibility criteria and make sure that you meet it. Get your personal finances straight and try again, your loan is sure to get sanctioned as early as possible.
Get to know more of easy home loan procedure with Antworksmoney.
