Getting a home loan? 4 mistakes that can lead to home loan rejection
Availing a home loan is surely a tedious task with a lot of research and time to get the perfect deal. Along with that not only you need to save your hard-earned money for the down-payment, you also have to compare the different lenders to get the loan at lowest interest rates. To get your loan approved, a good credit score, higher income, less financial liabilities, no default record is all you need. But, sometimes even with all the things in place, due to some unexpected reasons, a home loan application can be rejected. Experts say a home loan application can be rejected because many hardly pay attention to minute details. Neglecting them is what leads to rejecting a home loan application by the lender. Hence, stay away from these unfamiliar mistakes that can lead to home loan rejection.
Here are some unanticipated reasons for home loan rejection:
- No Objection Certificate (NOC): If you have forgotten to take the No Objection Certificate (NOC) from previous lender, you can face some trouble. Even if you have already closed your previous loan and are planning to avail a new, make sure you have your No Objection Certificate from your previous lender. If not, your home loan application may be rejected. If your CIBIL report does not have any mention of NOC, that can be a problem. Lenders are very rigid about their rules and regulations, when it comes to offering the home loan. Hence, always ask an NOC of your previous loan before disbursing the new one.
- Signature Mismatch: When it comes to the signature, we all know that it should remain the same everywhere. However, the home loan application is quite lengthy, and the applicant is supposed to provide his/her signature in many places. Hence, there are chances that the signature may vary a bit, which is why one needs to be careful while signing and avoid mismatch for the smooth approval of the home loan.
- Unpaid Bills: Even though it is an unexpected reason for home loan application rejection, which many of us usually don’t consider but especially unpaid telephone bills can lead to loan rejection. Many thinks it is a small thing, but it can lead to loan rejection. It is quite common that at times we miss paying our telephone bills on time, but that also affects the credit rating and thus compel the lender to reject a home loan application.
- Location: If you are buying a house in a location or an area which comes under negative zone or falls under the bank’s defaulter list, there are chances that the home loan application can be rejected. Lenders maintain a list of defaulters with a record of address, location and other details. Hence, if your current location is under the defaulter list or the negative zone, your application for home loan might get rejected.