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Do you know the common reasons behind home loans getting rejected?
While buying a home, many of us have to rely on home loans to fulfill our dreams, but sometimes we find home loans getting rejected by our bank or financial institution. Being aware of the reasons for rejection can help the applicants to be careful and prepare in advance so as to avoid any refusal later. Let us understand the possible reasons for the rejection.
Education Level of the Applicant
The level of education of the applicant also has an impact on the approval status of the home loan. Events tell that people holding education degree below graduation find it difficult to get home loans passed, unlike highly educated ones. Though, many other influential factors like income and status may break this fact.
Lower Work Experience
The applicants seeking loans must also have adequate work experience which gives job security in the eye of loan providers. Freshers who face hurdles to get a job also face the denial while applying for a loan only because they have lesser work experience and are incapable of paying up until job stability comes.
People who started working with a new company or a company that is relatively less popular find it difficult to get a home loan, unlike people who are working with reputed and high brand names. The banks have a strict procedure through which they check the credentials of the company and once they are satisfied, they take a decision about passing or rejecting a loan.
Joint family versus Nuclear Family
Banks tend to rely on people who are staying in a nuclear family than in a joint family. Although an extended family staying together is considered as a source of strength for a person, regarding bank lending terms, it is a bigger liability. The number of dependents is more in a joint family which may make it difficult for the earning member to pay big loan amounts.
If the builder from whom a person is planning to buy a home is notorious and has a bad market reputation, then the chance of getting a home loan passed is difficult. The bank will not move a loan to a building project that is being constructed by a builder with disrepute. The builder who is known for building quality properties and finish the project within the stipulated time can help the prospective buyers get their home loans passed. Many builders seek pre-approvals from the NBFCs and banks; this helps in quick loan disbursement. If the building has not received necessary statutory approvals, it can be another hurdle in getting loan passed.
Lower Value of Property in the market
If the property is overvalued, getting a home loan for the same becomes difficult. The property must be precisely valued so as to get a loan passed quickly.
These are some of the most common reasons behind home loans getting rejected. Thus, make sure that these reasons do not become a hurdle when you need a home loan to transform your dream into a reality.
But, at Wave City-NH 24, properties start INR 15.99 Lakh and INR 24.5 Lakh for 1 BHK and 2 BHK apartments respectively. Also, on spot approval facility of home loan is also available.
To know more about the rejection reasons, your loan eligibility and home loan offers at Wave City, contact us by sending your message.
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