What To Do If My Home Loan Application Gets Rejected?

Owning a home is one of the significant moments of our life. A home is a pride that we feel when we own our own home.

 

Buying a home gives a sense of security but also impacts your long term financial goals. After all, not everybody can purchase a home with available cash or bank balance. This is where you need to finance your home with a home loan.

 

Here, let us understand why your loan application was rejected to proceed with the rectifications. Once you know and rectify them, it becomes easier to avail of high-value loans with easy-to-meet eligibilities.

 

Shubham Housing Development Finance Company provides loans to those who are earning cash income. All you need to check is the eligibility criteria and documents.

However, a rejection of loan application may be a result of several reasons.

· High debt-to-income ratio.
· Property value not high enough for the applied loan amount.
· Previous defaults
· No proper documents

Here are some of the reasons how to narrow that gap to boost the odds of approval when you apply for the loan.

1. Identify the Cause of the Denial

It's important to find out why your loan application was rejected. Ask the lender about why your home loan got rejected as the lender will generally be glad to give you an explanation and are required to provide certain disclosures. This will help you to reapply for a home loan.

 

2. Pay Off Any Outstanding Debts

Paying off your outstanding debts reduces your debt-to-income ratio and thereby increases your repayment capacity.

3. Mortgage A Property Of High-value

If you own several properties or planning to mortgage a property, always remember mortgage a property that has a high market value. It not only increases your chances of availing but also fetches you a high amount of Loan.

4. Build A Strong Credit Score

 

Building a credit score is a long-term initiative, and by paying bills on time you can build the score high and also increases your chances of loan application approval.

5.Lower your home loan amount

If the reason for rejection is your monthly income, then try to lower your home loan amount, this will help the lender meet the bank's prescribed norms within limits.

6. Any documents if missing

Take legal advice if any important property paper is missing. There is always a solution to a missing document. No lender wants to lose a customer. At Shubham, we always ensure to help you determine the right loan for you.

If you've any more queries, do let us know, we are here to help you.