Getting a home loan is not an easy task. Before a bank or any financial institution grants a home loan, there are many factors that need to be checked in order to know one’s eligibility. Primarily, it depends on your repayment track records and stability of income. But besides that, there are numerous factors apart from the cost of the property that is necessary for deciding the home loan.
Your age factor: The first and foremost factor is your age which matters a lot in deciding the eligibility of loan. If you are in the age group between the 20s or 30s then you may opt for such loan of 20 or 25 years. But if you are in your 50s and near about your retirement then you cannot opt for a long-term home loan facility. Further, it is safe and wise to pay off all your EMIs before your retirement. Beyond retirement, your age is a risk and no company can bear this liability so it is not advisable.
Your income factor: Your gross monthly income is considered as another most important criterion that helps in determining your ability to pay EMI and repay on your home loan. The stability in the income will help you in getting more home loan.
NOC documentation problems: The Non objection certificate (NOC) from the recognized authority is very important so that to get the home loan. The Borrowers who are not able to provide the required documents in a proper layout will wipe out the entire chance to get a home loan.
Credit history: The loan factor depends on a lot of the Lender credit information. Each agency reviews your financial history and matches it with your credit report. A credit report is a complete account that gives an idea about your loans payments, credit lines and let you know about who has checked your score recently.
First stage rejection: Strange but very true, many of the home loan request gets rejected at the first stage and they are rejected because of incompatibility between the lender’s requirements and their credentials. It may be the proper documents not being submitted, age criteria, the bank not being able to verify your facts correctly, income criteria, and much more.
Your Family background: If your family background is not sound and there are too many loans going on may become a good reason for home loan rejection. However, the criminal background or people involved in any anti-social activities are also the sufficient reason for a loan rejection.
Difference in property valuation: The bank has its own experts who are well capable of checking all the financial legal, and technical formalities of the property. The authority evaluates the required property on their own said parameters.
Too many dependents: It becomes very difficult to get a home loan if there are too many dependents of a single property like as Parents, in-laws, children, spouse home-maker which sounds good a happy joint family? But this becomes a valid reason for home loan rejection.
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