4 Mistakes That Can Get Your Home Loan Rejected
All you need to get your loan approved is a good credit score, higher income, less financial liabilities, and no default record.
Taking advantage of a home loan is undoubtedly a tedious task with a lot of research and time to get the perfect deal. Also, you need to save the money that cost you so much to earn for the down payment. You also have to compare the different lenders to get the loan with the lowest interest rates.
All you need to get your loan approved is a good credit score, higher income, less financial liabilities, no default record.
But, sometimes even with all things in place, due to some unexpected reasons, a home loan application can be rejected. Experts say that 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.
Avoid these ignorant mistakes that can lead to home loan rejection.
No Objection Certificate (NOC)
If you have neglected to take the No Objection Certificate (NOC) from the previous lender, you can confront some inconvenience. Regardless of whether you have closed your past loan and intending for another, ensure you have your No Objection Certificate from your previous lender. If not, your home loan application might be rejected. On the off chance that your CIBIL report does not mention about NOC, that can be an issue. Lenders are exceptionally unbending about their principles and guidelines, with regards to offering the home loan. Henceforth, consistently ask for a NOC from your past lender before disbursing the new one.
When it comes to the signature, we all know that it must be identical everywhere. We all know that the home loan application is quite long, and the applicant is supposed to sign in many places. Therefore, there is a possibility that the signature may differ a bit, which is the reason one should be cautious while signing and avoid mismatch for the smooth endorsement of the home loan.
Although it is a surprising reason for the rejection of the home loan application, which many of us generally do not think through, especially unpaid telephone bills can lead to loan rejection. It is pretty common that sometimes we stop paying our telephone bills on time, which affects the credit rating and, therefore, propel the lender to reject a home loan application.
If you are buying a house in a location or an area that is in a negative zone or falls on the bank's defaulter list, there is a chance that the home loan application may be rejected. Lenders maintain a list of defaulters with a record of address, location and other necessary details.