With the advancements in market, the affordability of a house has become a big hurdle for most of the people, as market rates are raging. The trend is being shifted towards getting loans to fund the purchasing of property due to high leap in market rates. It has been customary to get mortgage and loans to make the home purchasing easy. But there are some complexities involved in getting mortgage which sometimes result in delay or complete mortgage loan rejection. Here are some of the most common reasons for rejection of home loan application.
Your incompetence
Banks run a complete background checking on you. It is to confirm that they are giving the loan to the right person who has the ability to repay it with interest. If they find you incapable of doing that due to any possible reason, your application of home loan will be rejected. Possible reasons may include instability of job, lower income etc.
Bad Credit History
Credit score has such an important and deciding factor for your home loan. This is like a blast from the past as your previous actions will haunt you here. If you had done damage to your credit report by not paying previous loans on time. It will make you vulnerable and frown the lenders so they will reject your application.
Insufficient Deposit
The never ending cycle of change in market rates will make you confused and lead to miscalculation of deposit. What you thought would be enough as a down payment, is not enough at all due to change in market. This will have enough share in rejection of home loan.
Location, Area and Condition of the House
The lenders are very much concerned about the condition of the property and the area where it is located. If anything goes wrong with any of two, your loan will have problem getting accepted and getting rejected. For example, the property has some structural faults or is overpriced the bank will reject the loan application. Similarly, if the location and area do not meet the standards set by the lenders will also result in rejection. To escape from this, it is recommended to Buy Apartment for Sale in JVC.
Existing Liabilities
Your application will surely be rejected when you are already committed to somewhere of paying loans. if you have previous incomplete to-do list then how can you manage additional ones? This is the question that will arise in lender’s mind. They cannot give you loan because they think that it will be impossible for you to manage this loan along with existing liabilities.