Is Your Home Loan Application Rejected? Take 5 Actions Today!

The dream of owning a home is shared by all, and it is an investment that is not only important in terms of finance, but it also has great emotional value. Thanks to many offers for home loans today, provided by many banks and NBFCs, there is no need to wait till retirement to have a home of one’s own.
However, have you been unfortunate enough to see that your Home Loan application was rejected? Here are five things to do to avoid all the home loan rejection reasons.

1. Improve Credit Score: You should improve your credit score before you apply for the home loan again. Home loans are unsecured loans and hence the credit score of the borrower is a major parameter which helps the lenders decide whether he is a good person to lend money to.
A score above 700 is considered strong enough and if it is below 600, one should definitely wait to improve the score. Try not to miss out on any bill payments or accumulate credit card loans which can adversely affect your score.

2. Check Eligibility: One of the most common home loan rejection reasons in India is that the borrower did not check his eligibility with the lender. Are you of the right age to apply for the loan? Have you checked the interest rates and does your income allow the home loan amount you are applying for? An eligibility calculator is now present across the sites of almost all banks and NBFCs and so one should make good use of it before applying.

3. Have a Good Repayment Plan: It is important to convince the creditor that you have a good repayment plan in place so that your home loan application is not rejected. Most of the time the eligibility calculator will show that a person is eligible for the loan based on his present income, but who knows what will happen in the future, especially with self employed individuals. Hence, some creditors are wary of approving the loan at first, but if you have a solid growth graph to show, then the lender will approve the loan.

4. Have all your Documents Ready: You might find that in spite of your income being more than enough to cover your EMIs, your home loan application is rejected. This must have been because your documents were probably not in place during the final stages of verification.
If you want to know how to get Approved for a Home Loan, any bank will first tell you about the documents they need for verification. One should be able to provide all the KYC documents, educational and professional certificates, pay slips of the last three months and bank details, and IT returns of the last three consecutive years. Businessmen should be able to provide proof of business like TAN or sales tax documents.

5. Avail Special Schemes: If you find that your home loan application could be rejected under conventional home loan schemes, then you have the option of applying for special schemes like Pradhan Mantri Awas Yojana, that will give you tax benefits as well as offer reduced rates on homes. However, do your research before applying for such schemes so that you can choose the best options for yourself.

If you are in need for a quick Home Loan, just contact best NBFC today. Bajaj Finserv is bringing you pre-approved offers for personal loans, home loan, business loans and a host of other financial products. As soon you make your online application and share a few basic details, you may check out your pre-approved offer.