Everyone dreams of owning a home which they can call their own. But the reality is that with real estate prices rocketing sky high, this dream may take some time and lots of effort to come true. But a home loan can help one in fulfilling this dream.
A home loan is basically a loan which is given by a bank to the borrower to buy a house or a property. The loan amount sanctioned depends on several key factors including the credibility of the borrower, the collateral which will be deposited by the borrower and his/her credit history.
There are several simple techniques which a borrower may use to assure that his/her loan application is not rejected. They are-
1. Ensuring no faults in the paperwork: In order to apply for a home loan, one needs to submit some essential paperwork which involves identity proof, income proof, current financial statements and other statements as the bank may require. The simplest way in which one may assure that the loan is not rejected is by checking and re-checking their paperwork so that it is complete and is in accordance with the requirements of the bank.
2. Assuring that one has a decent credit score: Every bank considers the borrower’s financial history before even considering the home loan application. This is done by calculating one’s credit score. One should maintain a credit score that is above 600, in order to ensure that their home loan is approved.
There are several activities which can negatively affect one’s credit score, including delayed credit card payments and outstanding debts. Even if your guarantor has a bad credit history or a backlog of payments the credit score suffers. So, one must keep in mind to that they have a respectable credit score for a quick home loan apporval.
3. Stability of income: To assure that the loan is sanctioned one must be able to prove to the bank that they have a reliable and a steady source of income. A new job or an unreliable one may lead to rejection of the application.
4. A proper location and a clear land title: A bank will always assure that the property that one is planning to purchase with the loan amount has a clear and a well- marked title. This is to ensure that there is no dispute regarding its ownership in the future. This is a basic criterion which must be fulfilled.
If one fills in their loan application by keeping the above points in mind, their loan application will surely not get rejected.
A home loan is basically a loan which is given by a bank to the borrower to buy a house or a property. The loan amount sanctioned depends on several key factors including the credibility of the borrower, the collateral which will be deposited by the borrower and his/her credit history.
There are several simple techniques which a borrower may use to assure that his/her loan application is not rejected. They are-
1. Ensuring no faults in the paperwork: In order to apply for a home loan, one needs to submit some essential paperwork which involves identity proof, income proof, current financial statements and other statements as the bank may require. The simplest way in which one may assure that the loan is not rejected is by checking and re-checking their paperwork so that it is complete and is in accordance with the requirements of the bank.
2. Assuring that one has a decent credit score: Every bank considers the borrower’s financial history before even considering the home loan application. This is done by calculating one’s credit score. One should maintain a credit score that is above 600, in order to ensure that their home loan is approved.
There are several activities which can negatively affect one’s credit score, including delayed credit card payments and outstanding debts. Even if your guarantor has a bad credit history or a backlog of payments the credit score suffers. So, one must keep in mind to that they have a respectable credit score for a quick home loan apporval.
3. Stability of income: To assure that the loan is sanctioned one must be able to prove to the bank that they have a reliable and a steady source of income. A new job or an unreliable one may lead to rejection of the application.
4. A proper location and a clear land title: A bank will always assure that the property that one is planning to purchase with the loan amount has a clear and a well- marked title. This is to ensure that there is no dispute regarding its ownership in the future. This is a basic criterion which must be fulfilled.
If one fills in their loan application by keeping the above points in mind, their loan application will surely not get rejected.
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