7 Reasons For Home Loan Rejection

Taking a home loan is one of the most crucial steps in building or buying a new house. Hence, it is important to be aware of the reasons that might impact the approval of the same. We have listed a few reasons for which your home loan can be rejected. The first and foremost reason for your home loan getting rejected is a poor credit score. A low credit score means that you have a history of defaulting on loans or credit card bills repayments. Thus, always make sure to pay your EMIs and credit card dues on time.


Job stability is also an important aspect that lenders check before approving the home loan. As per the bank’s requirements, you should be employed in a particular organization for at least three years to apply for a home loan. Further, your home loan may get rejected if your age is close to the retirement age. Try to rope in your spouse or employed children to increase the chances of your loan approval. Banks also do not accept all types of properties as securities for home loans. If your property has a lower resale value, there is a chance that your loan might not get approved. Lastly, lack of proper documents and mismatched signature could also lead to your loan rejection. So before applying for a home loan, make sure you keep all the above-mentioned factors in mind. Keep all your documents in order and check your credit history and income for hassle free approval of loans.

Additional Reading: 7 Reasons For Home Loan Rejection That You Weren’t Aware Of

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