Well, let's face it, availing a home loan is surely a tedious task. Yes, it needs a lot of research and time in order to get a perfect home loan deal.
Well, let’s face it, availing a home loan is surely a tedious task. Yes, it needs a lot of research and time in order to get a perfect home loan deal. You not only need to save your hard-earned money for the downpayment, but also have to compare the different lenders to get the loan at lowest interest rates.
A good credit score, less financial liabilities, higher income and last but not the least no default record is all you need to get your loan approved. “But, there are times when due to some unexpected reasons a home loan application can be rejected. However, we hardly pay attention to these minute details, but if you neglect them, the lender may reject your home loan application,” says Rishi Mehra, co-founder, deal4loans.com.
So, without wasting any time, let’s get started and look at 5 unexpected reasons for home loan rejection:
Mismatch of Signature: Many of you will surely agree on the fact that availing a home loan is no child game. Thus, when it comes to the signature, it should remain the same everywhere. Though it is quite understandable that a home loan application is very lengthy, and you are supposed to provide your signature in many places, there are chances that the signature may vary a bit. However, you need to be careful here and avoid mismatch for the smooth approval of the home loan.
Unpaid Telephone Bills: It is surely an unexpected reason for home loan application rejection, which many of us usually don’t consider. Though it is a very small thing, but it can lead to loan rejection. Well, “many times we miss paying our telephone bills on time. As a result of which an unpaid bill can affect your credit rating and thus compel your lender to reject your home loan application. So, before you apply for a home loan next time, make sure your telephone bills are paid,” says Mehra.
Forgot to Take the NOC from Previous Lender: Say you have already closed your previous loan and are planning to avail a new. Wait a minute! Did you get an NOC or No Objection Certificate from your previous lender? Well, if not, your home loan application may be rejected. Yes, you read that absolutely right. If your CIBIL report does not have any mention of NOC, you are in trouble. When it comes to offering the home loan, lenders are very rigid about their rules and regulations. So, will always ask an NOC of your previous loan before disbursing the new one.
In Bank’s Defaulter List of Location: It might sound weird to you, but this is true. If you are willing to buy a home in a location or an area which comes under negative zone or falls under the bank’s defaulter list, there are high chances that your home loan application will be rejected. Lenders do keep a record of address, location and other details to maintain a list of defaulters. And, if your current location is under the defaulter list or the negative zone, your home loan applicant might be rejected.
No Availability on Phone/Landline: You have filled the application form correctly and provided all the required documents, but when the verification team called you on your phone or landline, you were not available. Well, “in that case, the verification officer will mark ‘not responding’ in your application, thus your loan can be rejected. The lender investigates the details provided by you on your landline and the mobile number mentioned in the application form. If there has been no reception on the said numbers, your application is bound to be rejected,” informs Mehra.
So, stay away from these freak mistakes that can lead to home loan rejection and deprive you from being a home owner.