There are 5 main reasons why a home loan application may be rejected: 1) The builder is not approved by the bank. 2) The specific property is not approved, even if the builder is approved. 3) There are issues on the applicant's credit report or credit score. 4) Problems arise during the property valuation process. 5) Legal issues are uncovered during the application review. It is important for applicants to check which builders are approved by their bank and to regularly monitor their credit score in order to avoid rejections due to credit problems.
2. reasons why your home loan may get
rejected
• Builder not approved
• Builder approved but property
not approved
• Credit bureau issues
• Valuations related rejections
• Legal check rejections
3. Not all banks fund loans for properties of all
builders. It is critical to understand from the
builders which banks have approved them and
which have not, as it's possible that when you
have decided to buy a property and go back to
your banker and check, you realize that the
builder is not approved with your banker
making it impossible for you to get a home
loan on the same from your bank and then
you would have to go to a different bank.
4. Most customers do not check their credit
scores and are mostly oblivious to the same,
there can be some old payments missed by
the customers or some past challenges the
customer may have had, which they have
forgotten about. The same can be adversely
affected one's scores, and a poor credit score
and performance can lead to rejection of
home loans. It's very important that customer
regularly check credit scores and fix issues if
any, around poor credit history immediately.
