North India Statesman
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Home loan tips: The dream of your home is the biggest dream of everyone’s life. And when the bank rejects the application of your home loan to fulfill this dream, it seems as if all the expectations are broken. This can be a heart -breaking experience.
But believe me, this is not the end of your journey. The bank’s ‘no’ does not mean that the door to buy your house is closed forever. With a little understanding and some steps taken in the right direction, you can not only strengthen your application, but can also force the bank to say ‘yes’.
Let’s know that 7 easy and effective ways.
1. 1 and one eleven: Make your strength (add a co -pplicant)
If your salary is low or your Cibil Score is slightly weak, then add a member of your family with a lonely applying for a loan alone. Creating your wife/husband, parents or children co-applicant doubles your ability to repay your loan. The bank is confident that if one person is not able to repay the EMI, the other will repay, which reduces their risk and the chances of passing the loan increases manifold.
2. Apply a little more from your pocket, get the confidence of the bank (Increase Down Payment)
The bank always sees how much of the total price of the property is putting from your pocket (down payment). When you pay more down payment, the loan amount is reduced. Low loan means small EMI. This makes the bank believe that the burden of EMI will be reduced on you and you will be able to repay the loan easily.
3. Improve your ‘Financial Report Card’ (CIBIL score)
The poor CIBIL score is the largest and common ‘villain’ to reject home loan. A score above 750 is considered a great report card. to improve the:
- All your EMI and credit card bills always on time Pay
- If there is an old small debt, then finish it as soon as possible.
- Check your credit report, there is no mistake in it.
A good CIBIL score is the biggest proof of your honesty.
4. Light the burden of your existing EMI (Improve Your Foir)
The bank also checks what percentage of your every month’s earnings are going to EMI (eg car loan, personal loan). This is called Foir. If it is more than 50%, the bank is afraid how you will bear the burden of another new EMI. Therefore, before taking a new home loan, reduce this burden by repaying your small loan and credit card dues.
5. Increase the time to repay the loan, make EMI short (Increase Loan Tenure)
If you pay the loan period 25 or 30 years instead of 20 years, then your EMI of every month becomes small on its own. Small EMI means that the bank will trust you more. However, you have to pay a little more interest in total, but this is a very effective way to pass the loan.
6. Play ‘Relationship’ with your old bank
Always first apply for a loan in the bank where you have a salary account or an old savings account. That bank already knows the history of your transactions, your savings habits. Banks easily believe their old and trusted customers.
7. Knocking another door (Try NBFCs)
If there is frequent disappointment from big banks, there is no harm in knocking the door of non-banking financial companies (NBFCs). NBFC rules are slightly flexible than banks and they often give loans on low CIBIL scores. However, their interest rates may be slightly higher than banks, so take a decision only after thorough investigation.
Remember, rejecting home loan is an obstruction, not the end of the floor. Identify your shortcomings, improve them and apply again with full confidence. Your dream house is waiting for you
