Know Why Bank Reject Your Loan
We are aware of all the rules and we also know why our loan gets rejected from the bank. Whenever we go for applying home loan it is true that we have to go through many procedures like having a better credit score, all your credit card bill have been paid, try to increase your income level, and you have paid your entire previous loan.
This is not the only reason why your loan gets rejected. There are other reasons why your loan directly gets rejected. We are here to let you know about the reason for what your loan get rejected.
1. You are a job switcher:
The current generation is quite commonly known for switching their job frequently. If you do that your bank account would be having an instable amount and because of which your loan can get rejected. Bank gives a lot’s of importance for the job stability and the bank also says that the applicant should be the employee of the firm for almost 1 to 3 years.
If you really want your loan to get approved then the first thing that you need to do is remain constant for a job for more than 1 year. Therefore it becomes really important for you to stick on a job for long period of time.
2. If your residence is on the defaulter list:
If suppose you are leaving in a residence where the previous resident was having a bad record on bank and the address has been in the defaulter list then there is possibility that your loan might get rejected. This happens because when you’re residential address matches to the residential add that is black listed, than your loan might get rejected.
To come away from this problem it is better if you talk with the relationship bank manager. Show them that you don’t have any personal relationship with the previous tenant.
3. If your profile does not match the bank policy:
Each and every bank has its own policy. Policies include the geographical area, income, and debt profile. If any of the policies doesn’t matches to the bank policy then your loan gets rejected.
To overcome this problem you can take a discussion and add the security either like your guarantor from, fix deposit, insurance policy, collateral policies and many more. It would be better if you trey for the loan to the nearest bank or the branch. Also check the bank policies and give additional security either.
4. If you are purchasing a old building:
There are many banks that don’t gives you loan for purchasing the old buildings specially those buildings that was constructed around 20-30 years back. The criteria of the bank changes from area to area.
To get your loan approval, first keep in mind that the value of the land is always considered. To get your sanctioned it is better you increase the down payment and better to apply for lesser loan.
These are some other way the bank would reject your home loan. It is true that documents are necessary, but before giving the documents you need to make a proper survey of the property you are planning to buy, and also know the policy of the bank to which you are going to apply.