Applying for a home loan is a good idea if you are planning to buy a new home. If you are sure that you have a good credit history, less financial liability, higher salary package and above all no default record. But what next after having all this plus points in your account, still your application gets rejected because of something out of the box point. Most of us take care about our CIBIL score, maintaining a good credit history, filling the application properly and providing the documents as demanded by the bank, but there are points, which we hardly consider and pay attention. So it is always good to stay informed and avoid such pitfalls. Here are some unexpected reasons one should avoid to skip rejection of your home loan.
Not available on landline/not picking the phone: You have provided the right information, duly filled all your documents and application form. Given all information which is correct and authentic. In all the forms banks ask for landline and mobile number. If you have given the landline number, there are chances that verification team will call you on your landline number for verification purpose. In case you failed to pick the call the officer will mark as ‘not responding’ in your application and reject your loan. So ensure that whichever contact number or details you are providing to bank are correct and you are there to answer all the calls.
Unpaid telephone bills: This is one of the things, which none of us ever considered while applying for a loan. This is really a small thing and at times we miss paying our telephone bills on time. It will be a great surprise for you to know that an unpaid telephone bill can really affect your chances of buying a property. An unpaid telephone bill or late payments of bills can affect your credit rating and can give a reason to lender to reject your application. So if you are planning to buy a new home just clear your bills before applying for a loan.
Signature mismatched: Your signature is your trademark and you need to be very sure that it remains same at all places. While filling the form you are supposed to fill many pages and provide your signature in many places, in case if all your signature will not match bank will reject your application. So you need to be very careful and sure before signing your application that all the signature will be similar at all places. All the signatures at forms, photocopies, bank statements and even with your bank should match.
The previous tenant was a defaulter: This sounds a bit freak, but this is true. Banks keep a track record of address, locations and other details to maintain the list of defaulters. If your present address is at defaulters list because of previous tenant, there are chances that the bank might reject your application. Banks maintain the data on locality basis, if your area is in the list of defaulters there are high chances that bank will reject your application right away.
Forget to take the NOC from previous lender: If you have already closed your previous loan keeping the view in mind to reduce your financial liability and increase your credit worthiness before applying for a home loan. This is really a good idea if implemented with caution. If you forget to update your CIBIL score and get an NOC or ‘No Objection Certificate’ from the bank on already closed loan, your home loan application may get rejected. Banks are very specific about the terms and rules and will always ask to produce the NOC on a loan that you previously took and has closed. If you have not collected the NOC letter from your previous lender, your application would be rejected on this basis.