Reasons Which Can Lead To Rejection Of Your Home Loan Planning to buy a new house? Nothing is more pleasurable than having a dream home which perfectly fits into your budget. However, this beautiful dream can get shattered if the bank rejects your home loan. It becomes really hard to digest the rejection and move from one financial institute to the other for the approval of the loan. So, it is better to be careful in advance, than searching for new options after rejection. If you have knowledge about the common reasons which may lead to rejection of your Hawaii home loan, then you can take the precautionary measures to avoid slipups. Sometimes, the loan gets rejected for an unexpected reason, but there are certain things which normally cause the disapproval. Let’s have a look at them in detail.
1. Bad credit score- Bad credit score is the outcome of bad credit history which is the most common reason for the rejection of a loan. Delay in the repayment of a loan, non-payment of credit bills, too many enquiries to get a loan, etc. can lower down your credit score. When you apply for a home loan, the financier doesn’t only consider the valuation of your home and your income, they also pay attention to your credit record, as it showcases your past financial behavior. Their decision to approve the loan is
based on this record. So, if you think that your credit record is not so good, try to improve it before you apply for a home loan. 2. Irregularity in filing IT returns- If you are irregular in filing your tax returns, then bank can reject your home loan application. It is very important to have clear track record of income tax returns at least for the past 2 years in order to get your home loan approved. 3. Age- Age is another important factor which financiers consider before approving your loan. If you are nearing the retirement, then they normally provide you short term loans. These loans need you to pay high monthly installments. In such scenario, if bank thinks that you will not be able to pay such a big amount as EMI, then it can simply reject your loan application. So, if you wish to avoid the rejection due to age factor, then it is better to save more funds that will help you pay EMI, even after the retirement. Another safer way is to think about purchasing the home, well before retirement, so that age will not become a hurdle to get residential home loan in Hawaii. 4. Job stability- Having a stable source of income is very essential to get your home loan approved. Many of the banks consider the stability of your job as primary factor. If the bank finds out that you keep on changing jobs, there is high possibility it rejects your loan application. Now, when you are aware of the things which can cause rejection of your home loan, you can be careful and be precautious about avoiding the mistakes.
Source URL:- https://goo.gl/EmZeZJ