Some home loan applications are rejected simply because of technical issues. They can be resolved by providing additional information Others are rejected when lenders increase their requirements to qualify for a loan which makes it progressively harder to get approvals.
New Delhi | Jagran Business Desk: Are you disappointed because your home loan application is rejected again and again? Fret not! We have a solution for you. Home loan applications can be rejected due to various reasons. It is important to know and improve on them to increase the chances of getting your home loan application approved.
Some home loan applications are rejected simply because of technical issues. They can be resolved by providing additional information Others are rejected when lenders increase their requirements to qualify for a loan which makes it progressively harder to get approvals. Then comes your credit score, Loan-to-Value (LTV) ratio, and capacity to repay. These factors also affect the chances of getting a home loan.
Here are a few things you could do to make your loan application stronger:
Find out why your loan application got rejected
The first thing to do is to find out why your loan application got rejected by the bank, before reapplying for the same. Talk to your lender and ask for all the details that might include a letter specifying everything related to your profile. However, remember to ask for the details within 2 months of application. This will help you to improve your profile and get a loan.
Check your Credit Report
The second important step is to check your credit report in order to access where you stand in the market in terms of repaying capacity. lenders always prefer applicants with a solid history of borrowing and timely repaying. Your credit history could include the number of loans you have taken and whether you have paid their installments or not. It reflects your financial condition. If your loan is getting rejected because of this, you should clear out your due balance. However, having no loan at all also decreases your chances to get a loan.
Access Debt and Income
If your debt is more than your income, the lender will certainly reject your home loan application since it lowers down your repaying capacity. That is why always pay your EMIs on time and maintain the debt to loan ratio. Every lender has different policies and metrics to assess the loan and has its risk appetite. Apply for a home loan in accordance with them.
