Through this article, we have created a list of reasons why your home loan could get rejected and this will help you to tide over them and avoid these common reasons:

• Poor Credit score: Your credit score is a critical factor being considered when home loan companies are reviewing your home loan application. If you have a poor credit score, you can take steps to enhance it and then apply for the home loan for a positive response from your home loan company. Here’s what you can do to maintain a good credit score:

• Make sure your credit card bills are paid in time
• Use your credit card judiciously and keep a track of payment due dates
• If you want to take a loan against your credit card, make sure you have cleared your existing dues before applying for it.
• Remember that late payments reflect badly on your credit score and will become a hurdle while applying for a home loan.

• Non-filing of Income Tax Returns: It is necessary to keep a clean track record of filing income tax returns on a regular basis, as home loan companies ask for past two years records of returns filed. Make sure you file income tax returns before the due date and ask for Form 16 from your employer if you are salaried.
• Address in defaulter’s list: If someone from your family who is living at the same address as yours, has defaulted on repayment of any loan, there is a probability of getting rejected for home loan. Banks have the addresses stored in their database and this could work against you.
• Other Ongoing loans: If you have already availed of other loans like credit card, personal, vehicle or consumer loans and are paying a hefty EMI, the bank will review your application carefully. If the loan company feels that your repayment capacity may get affected by a fresh loan, your home loan application could end up in the rejection list.
• Loan Guarantor for a Defaulter: If you have stood as a guarantor for a friend or relative’s home loan, make sure that person has a strong repayment capacity, before you sign on the dotted line. If the person fails to repay the loan for some reason, you will be responsible for repayment and your name will feature in the list of defaulters.
• Age: If you are a salaried professional and close to retirement, banks will be vary of sanctioning your home loan. This is purely because your repayment capacity will diminish after a few years. At such times, you could opt for a co-borrower who has the requisite number of years left to comfortably repay the home loan.
• Frequent job hopping: If you have been jumping from one job to another on a regular basis, you could be in trouble while applying for a home loan. Banks and home loan companies look for job stability and some loan providers need the loan applicant to serve an organization for a minimum of three years. Your company’s credentials will also matter a lot when your home loan application is being scrutinized, so choose carefully if you plan to buy a home in the future.
• Prior loan rejection: If your home loan application has been rejected in the past, this will get recorded in your CIBIL rating and show up when a fresh application is made. Do not apply simultaneously with many companies as one rejection could ruin the show for you.

Experts recommend calculation of your net worth to ensure you are ready to commit to this long term loan repayment. Use the online calculator to get an idea of the EMI you will have to pay and also understand your home loan eligibility. Apply for a CIBIL report prior to your loan application so that you know the drawbacks you have. Check these reasons and prepare yourself accordingly to get a positive response to your home loan application.

Buy or rent, a home is a home. Period

The general impression people have is that homeowners are happier than those who lived in rented homes. This is a misplaced perception, apart from the asset creation bit, in both cases the security the home offers is the same. Home owners are responsible for every small bit of maintenance the home needs while the renters can simply rely on the landlords to get the job done. The joy of owning a home however is bigger which the renter may miss out on. All in all, the score looks balanced at least at this stage.

Choosing your paint carefully

Colours are long known to have an effect on our moods and this could be directly proportional to the happiness index. Various studies conducted worldwide have shown that the colours green and yellow induce a feeling of happiness and joyousness so make sure these colours are included in your choice of colours for the home. Consider green for your bedroom to enhance a feeling of tranquillity and comfort while yellow is a safe bet for a study or kids’ room due to its power to boost creativity and liveliness. 

Reduce the travel time

Seems like a long shot, doesn’t it? Commuters of metro cities will agree that travel is an integral part of city living and cannot be avoided. Long travel does impact the overall mood and could lead to lower levels of joy and happiness. So remember, the less you commute, the happier you will be.

Keep your home clutter-free

A cluttered, crowded home will lead to an increase in irritation levels as women are highly affected by the mess that lies around while men somehow manage to reach for the remote, albeit with some additional effort. A clutter-free home gives a feeling of cleanliness and hygiene thus keeps your young ones free from allergies and the parents worry free. Cleaning out unwanted stuff from the loft, balconies and from under the bed leads to a lot of extra space that can be utilised for other important things.

Thinking of renovations? Do it ASAP

Who doesn’t want a furnished home? Broken bathroom tiles or a dull paint-job could lead to relationship issues as an unhappy home could relate to an unhappy spouse. Take that decision to redo your home today before it affects your family life. Home improvement projects take forever and experience says it is wise to begin at the earliest to get the most out of your home and your relationships too. Studies say a perception of living in a dowdy home can point towards a feeling of unhappiness and being imperfect. 

Got a Home Loan? Pay it off if possible

Getting a home loan may have become easier nowadays but the pressure of a mortgaged home could get to you over a period of time. Pay off by saving on the side and you will enjoy what they call a “weightless” feeling. So watch your mood elevate to unknown heights as the loan amount reduces and vanishes.

Get to know the neighbours

Various studies have pointed out that if one is friendly towards neighbours and is known to engage in a regular, unforced conversation with them, they are happier and joyful. Urban lives become lonelier by the day and a bit of social interaction never hurts. Interacting with next-door neighbours or short conversations can lead to a general feeling of happiness and belonging. You could organize a small get-together or attend the society meeting if you are new around and watch the transformation. Take every opportunity to get acquainted with the people who you come across every day and increase the happiness quotient by a few levels.