Home Buyers’ Guide: Tips To ‘Nail Down’ Your Home Loan & Avoid Rejections

Nothing can be more frustrating that your application for home loan getting rejected. Your dreams shatter and your hope nose-dives into the deep pit of failure. However, nothing is destined or a yield of your bad fate. Applying for a home loan and getting it sanctioned from the bank requires meticulous approach. Indian realty market is flourishing with increased FDI inflows and a number of cities with an amazing infrastructural make over. Therefore, you must now follow a strategy and lay emphasis on certain pointers so that you opt for a right home loan and that too successfully.

Here are few points that can help you to nail down your home loan successfully:

1. Maintain a Healthy Employment Status

Before deciding to go for a home loan, you must be assured that your employment status is stable and healthy. There can be lay-offs, on-bench projects being turned off or anything bad related to your job. Therefore, you have to feel the situation around you and then use your senses to make sure that the job is safe and secured. There are loans that are offered to people not in job but for home loan, the bank has to have a candidate with a secured career role.

2. The Income Level

The income level will decide the amount you can pitch for the loan. The bank may reject the application if you appear to be lacking sufficient income for the size of the loan. In such cases, you may be required to request about making a larger down payment or bringing in a co-signer, such as a relative and that too a with solid credit. Both the scenarios can be painstaking if you lack the much needed resources and capital.

3. Financial Stability

Apart from a secured job, banks in India take note of other aspects that will judge your financial stability. These aspects could be property or fixed deposits that will decide the fate of your home loan application. Apart from this, if you are already bearing a car loan and a personal loan then there are possibilities under all the legal circumstances that your current loan eligibility will come down and your home loan application will be rejected.

4. The ‘Flexibility’ Factor

This factor is very much accessible if you are planning to buy homes in some of the India’s flourishing markets like Bangalore property market or realty market of Chennai or Mumbai. The buyers can enjoy the repayment options and that too sans extra charges or if there are possibilities of re-fixing of interest rates. The Indian real estate market witness cut-throat competition and the banks with this understanding approach are now offering a great deal of flexibility in the home loans.

5. The Home Appraisal Value Matters

This is another important aspect that you must take into consideration now without any fail. If the bank feels that the home you wish to buy isn’t worth the amount that you seek to borrow then there are chances that the loan plan will fall through. Therefore, it is advisable to listen to what the bank has to say and be grateful that you did not overpay.

The Verdict

Nailing down an apt home loan and that too through a right path can be a little tricky as there are a lot of options in the market. Moreover, there are points that if missed can lead to home loan application’s rejections. So, ponder over the points and all the best for your dream home!

Author Bio

Vineeta Tiwari is a keen writer on Global Economy and Realty market. She has written articles on Global realty market and ongoing trends and tips for investors. An ardent reader, she is happy to pen down research based write-ups for global audience. Currently, she is professionally associated with popular realty portal, 99acres.com.
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