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5 things that may spoil your home loan application
home loans

5 things that may spoil your home loan application

Buying a home is a big decision of life and home loans support your decision but presenting a good image to home loan lenders is also essential otherwise it may spoil your home loan application. Here we are providing five important tips to make your home loan application better.


 5 Things that may spoil your home loan application


Age and Income

Lenders read so much in your age and salary. Bank want to loan more to a person who has a lot of time to repay the loans. Taking example of a 56 year old person with salary of 18 lacs per annum may be eligible for 50 lacs home loan whereas a 28 year old person with same salary may be eligible for 90 lacs of home loan. The key differentiate in both home loan application is their loan repayment tenure, as home loan is a very long term contract between bank and applicant. Banks also look for stability of applicant like- applicant must be with present organisation for more than one year and organisation must also be bigger than 50 employees. First time entrepreneurs and job hoppers face difficulties in getting the desired outcome. Click here to read about Your home loan eligibility.



Too many enquiries

Don’t show yourself as credit hungry applicant to prospective lenders as it may be interpreted that nobody is ready to sanction loan to you. Making too many enquiries is not considered well as every enquiry may degrade your credit score by 10 to 15 points. The process is like this, when you ask for a loan the financial institutions make a query from credit rating agency where your every detail including number of queries are well documented. So apply for a loan only when you have full made up your mind to go about it, don’t go around window shopping for best deal.



No credit History

Many people have this impression that having taken no loan is very good for them and they’ll get very good deal when they apply for a new loan but nothing can be farther from the truth. Having no credit history means that there is no way to check your credit history while going through your request for loan. One very sound tip for people is that they should use credit card for most of their needs and must fulfill all debts of credit card on due dates. One should not miss due dates in any circumstances as charges for credit card is very heavy. The bottom line is that you should be able to present a good credit history to improve your home loan application.



Property Background

Many banks lend only to selected and few builders with which they have ongoing relationships. Many developers and their projects are blacklisted by many banks and buying those properties without checking for bank loan may result in rejection of your loan. If you are buying ready to move in properties, don’t go for very old properties as there is a risk anticipated by banks in terms of structural collapse. Many factors of ready to move in property like unclear titles, construction quality of building, legal action, and price trends of particular location weigh in by property value’s appointed by the bank. A very important tip for buyers is to go for pre sanction service provided by banks so everything about home loan is clear to them before making a commitment.


Family Background

There are some very surprising facts for many people here. If you are a single working woman, you run the risk of bank thinking that you may leave your job after marriage and the loan may be in risk. There are many factors like if you are applying for a loan with siblings, your loan may not be approved. If you are divorcing your partner can make things difficult, or may be result in the rejection of the home loan application. Stable family situation improves your chances of getting best deal on home loan. Click here to read about Joint home loan.



We hope this information will help you to get your dream home and hopefully you won’t face any problem.




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