It's a great feeling when you own a space that you can call home. However, real estate prices are skyrocketing high, and it’s nearly impossible to fund your dream home with the little savings you do over the years. Therefore, many aspirants apply for a home loan from reputed banks or finance companies. However, before you apply for a home loan you will have to do a lot of planning and research, compare quotes on aggregator sites, and pick the best possible home loan that proves lighter on your wallet. But it is not necessary that when you apply for a home loan, it has to be approved by bank or finance companies. Many times your application gets rejected as well. There are many reasons for which banks or financial institutes reject it. It might turn a nerve-wracking experience if you don’t have proper knowledge on the subject, and find your application is rejected. Thus, the best way is to prepare for such in advance so that you are sure to get the loan approval.
Here are smart ways that deny from getting your loan rejected:
Don’t keep unpaid dues
Any major debt history, especially of credit cards will make a negative impact on your credit score. Lenders will evaluate the history to know your creditworthiness and repayment capacity. And if it’s not up to the mark your application it tends to get rejected. The best way is to clear the condition and be punctual with the payments. Don't miss a deadline on EMIs and credit card dues. This way you ensure you get an inch closer to your loan approval.
Stick to your job
Job stability is the next thing on your watch list. Frequent change in the jobs would reflect poorly on the loan application. It will create a sense of doubt about your income generation. So, it’s better to stick to your job longer and apply for a home loan in india once you're stable in your job or profession for 2 to 3 years. Also, the company reputation such as its being listed or not, employ strength, public or private limited all these factors will be taken into consideration.
Don't become a loan guarantor
Being a loan guarantor is a risky shot especially when you're about to make an application. That's because if the other person won't pay back the money, then it’s your responsibility as a guarantor to repay back. This will be a big blow to your finances, and it impacts your credit score. Thus, it can lead to home loan rejection. The safest way is to avoid being a guarantor.
Keep a strong financial portfolio & file regular IT returns
Banks and financial institutes will evaluate your account statement, check your financial history and see if you file your income tax returns or not. They basically want to ensure you can easily make loan repayments. It’s better to build a clear track record of income tax returns of the past 2-3 years before you head towards applying for a home loan.
Apply when you younger
Most lenders will welcome your loan application when you 're young and step into the world of employment. At this point of time, your credit score is not affected, and you're free from any form of prior financial responsibility. Thus, you can easily contribute towards your Apnapaisa home loan repayment, and clear the debt before the loan tenure.
Follow these simple tips, and improve your chances of getting a home loan approved today!