If your home loan application has recently been rejected, you are likely feeling disappointed and that there’s nothing that can be done about the situation. However, giving up or letting frustration creep in won’t get you anywhere. In a situation like this, there are some things you can certainly do.
1. Don’t Shy Away from Asking
This is the best way to find out what went wrong with your home loan application. Often, the reason behind a loan rejection is that the home loan eligibility criteria were not met. Most lenders will be open to offering an explanation as to why your application was rejected. This will also help you understand dos and donts when you reapply for a housing loan.
2. Analyse the Situation
Don’t get hassled over the situation; take some time to dig deep and analyse the problem. Examine your credit report to see if it was the reason behind the rejection. Sometimes, the reason behind your home loan rejection can be the other loans that you have taken. To become a better loan candidate you can start by closing your existing loans. You can also use Tata Capital’s home loan EMI calculator to calculate your repayment amount. Our EMI calculator for home loan can help you estimate the EMI that you’ll be paying, which will help you in managing your finances. Reapplying after analysing your financial situation will increase your likelihood of securing a housing loan.
3. Reduce Your Home Loan Amount
You can also look at reducing your home loan amount, especially if your monthly income is not sufficient to handle the burden of a high home loan. This will also improve your repayment capacity, making you a more suitable candidate for a loan.
4. Make a Down Payment
Sometimes making a higher down payment for the house can help your loan application get approved quickly. A larger down payment means you’ll be borrowing a lower amount which will lead to reduced monthly payments and higher chances of getting a loan approval.
5. Check Your Documents
Lenders often have a fixed documentation requirement but if important documents containing crucial information are missing from your application, there is a good chance it will be rejected. To avoid this, always make sure that you have the required documents your lender has asked for.
Rejection of a home loan doesn’t mean that all doors have closed. So, do not get disheartened by a rejection; instead, try to figure out the reason behind the rejection, rectify the errors, and reapply.
At Tata Capital, we offer easy home loans for your requirements at attractive home loan interest rates. Check your home loan eligibility and monthly EMI payments with our home loan calculator. With a simple application process and speedy disbursals, securing a home loan at Tata Capital is quick and convenient.
So what are you waiting for? Visit Tata Capital today for easy housing finance.