4 Common Home Loan Problems Faced By Borrowers

By Author: pankaj gautam
Total Articles: 17
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It is quite a lengthy process of getting the home loan. However, it might look simple to you but there are lots of hiccups which can disturb you. Let’s have a look on some of the common problems which are faced by home loan borrowers.

Rejection of the loan at the first stage

It is true that many home loan applications even fail to pass the first test. These are rejected due to the incompatibility between the qualification of borrower and lenders needs. It could be when you furnish wrong documents pertaining to age, income, etc. You can effectively avoid it when you will check the eligibility requirements of various lending institutions and apply only to those banks which can successfully match with your profile. You should keep all your documents ready and furnish accurate, verifiable details to lenders.

When desired home loan is not sanctioned

The home loan amount which is sanctioned is on the basis of repayment capacity of the borrower. There are varied things which will consider by lender while giving loan amount like, monthly income, financial history, credit report, etc. When all these factors ...
... combine then it helps the bank in deciding whether the applicant would easily repaid loan amount or not. The lender can reject your application if you will not meet with any of these criteria.

Difference in valuation of property

The bank has its panel of experts which do legal, technical and financial appraisal of the property. It does the evaluation of the property on the basis of its established parameters. It can be lower than the price which you quoted. The lender will lend you the amount it has valued. It can create a significant gap between what you require and what the bank is interested to lend. In order to avoid such situation, the borrower can get its property valued before you approach the bank for home loan.

Problems in title deeds and no objection certificate documentation

The applicant is required to furnish title deeds and no objection certificate documents which you are required to furnish in the format prescribed by bank. Those borrowers who will fail to furnish such documents in the prescribed format won’t get the housing loan. If you don’t want to face such situation then it would be useful if you will do the proper enquiry about all documents which are required by lenders and take crucial steps to get them ready before the time frame. Apply HDFC home loan