Scorecard: Your Home loan eligibility depends on your credit scorecard
Banks consider your scorecard or track record data from the credit bureau before granting you a home loan.
Seeking a loan has become quite a precise task as there are few mandatory aspects to be considered while planning to seek a loan. Before granting a loan, the bank does a thorough check on all the past track records of an individual’s finance. Various factors like an individual’s income, current expenses and the overall track record data from the credit bureau will be considered while granting a loan and a person has to be particular about all these things before seeking a loan. Other factors like the current expenses along with the current loans, complete ownership of a property and other such factors will be considered by the bank before granting a loan.
The seeking of a loan is also based on the falling interest rates. Apart from just the bad credit home loan factors, there are various other factors which should be considered while seeking a loan. It is also important that a person should consider on what type of a loan he should opt for. Adding on to it, it is also important that a person should opt for a floating rate of interest with the current economic scenario.
The procedure for an NRI to seek a home loan is different although the basics are the same. Banks may demand for a resident Power of Attorney in India for an NRI seeking a loan. Granting a loan for an individual also depends on the nature of the property and the individual.
Other factors by which your home loan can be rejected
Staying under a defaulters roof: You will not be granted a loan if you are staying under the same roof as someone who has credit card dues and a delay in loan repayment with a complaint to the CIBIL. The banks will have the address of the defaulter and in such cases there are increased chances of you not getting a loan. The reason is that you are staying under the roof of a defaulter.- Many loans, less income: If you have a very less income and have already taken too many loans, then there are very less chances of you getting a home loan. If you are already paying half your amount as previous loans you will not be granted with a loan.
If you are the loan guarantor who hasn’t paid the dues: There are increased chances if you are the loan guarantor to a person who hasn’t paid his loan. Before signing the documents as a guarantor you should be very careful and get to know if the person is capable of repaying the loan amount. If not you will be accountable to repay the entire loan amount. In such situations, when you are unable to repay the loan on behalf of the defaulter you will be reported to CIBIL and this will in turn set a bad report.- If your co-applicant has a bad record: It is very important that other than you even your co-applicant has to have a clear financial track record. If your co-applicant has a bad track record, your loan request will be rejected.
- If you are a job hopper: Banks demand a criterion that a person has to have a stable job and income in order to seek a loan. He should be completely eligible for a home loan.
Always remember that you should go in for a home loan for a particular reason. Taking a home loan innumerable times without any reason will result in the rejection of your home loan. Make sure that your home loan is not rejected earlier and in case it is rejected earlier for any of the above causes or any unknown causes, you will have to approach the bank and clarify things for the cause of your loan rejection.
Read more real estate articles:
Home Loan: Tips to reduce interest rate burden
Know How to Calculate EMI (Equated Monthly Installments)
Home Loan Protection Plan to Protect Your Home Loan
