Top 5 Home Loan Rejection Reasons & Resolutions

INTRODUCTION of Loan Rejection Reasons & Resolutions

In our life, there are many important events and decision making we have to go through. Part of it definitely included Loan application and Rejection. Now, applying for a Home loan/Mortgage loan required research, comparison, and organizing vital documents.  Often times, people end up with a rejection notice even when they think they are well-prepared for the loan application.

1. Do not sign up to be a Guarantor.

If the borrower’s financial status is already at stake, why risk yourself without a guarantee/confidence.

2. Unpaid Balance Records

You as an Applicant applied for a Home loan.
History check on your Credit Records – is a fundamental act done by the lender/bank to determine your status as a potential applicant. Timely payments should be made by you without dragging irresponsibly.
(Including Credit Card bills and repayment dues.) Even your phone/internet bills are crucial

Be a punctual payer OR get confused by a rejection letter without knowing the cause.

3. Your Personal Background Matters

Being a Guarantor to other people? That has a chance to spoil your profile.
In the case the Malaysia bank finds out, you will be taken as the one who is responsible when that someone you signed for is incapable to repay.

4. Prove Your Entrepreneur Status

It is absolutely easier for Home Loan to be approved for entrepreneurs with reputable businesses and stability. Huge capital and secured-future.
However, if it is a fresh start-up or under a growing scale, it might just kill the chance and the vibe of the bank/lender consideration to your application.

To get them reviewed and approved, you must provide reliable resources/statements that shows the capability of the business potential one can assured.

5. The age dilemma

Borrowers’ age are close to the retirement age. As a matter of fact, the bank or the lender might hesitate. WHY? – Assessment done on retiring borrowers makes the bank to be cautious, the borrowers’ capacity to repay can be low or none.

There are banks offering short-term home loans, but it may be adding burden to the applicants. Getting a Loan Financial Consultant discussion to find out the workable solution is what most people need.

NOC – Closure Assurance
It is essential for all previous closed loan to obtain a NOC (No Objection Certificate).
NOC proves you have cleared all dues to the lenders or the bank for a loan that has ended and closed.
-Let’s be honest, did the school kids ever been trusted by the teacher when they admit they did their assignment or homework during the holidays? IT is all talk before the homework hands-in.-

Loan Tips : Level up your additional security to the application such as providing the bank your FD, insurance policies, guarantor.

Conclusion:
There we have the reasons why the bank giving loan rejection.
It is not a fun story to tell when an application is being rejected. Your Credit Score has history, the bank will suspect and we are unable to tell what they can dig up in the histories that we have all forgotten.

In doubt? It is definitely valuable to be with consultants that has experiences & connections with the senior banker in the industry, you may not know what you need, but a specialist will either tell you or show you how it is done.

MAKE an appointment and sort this all out. It will only cost you time.

And in return, you might have secured the home loan you have been looking for with a professional advisor.

Check MNS Alliances Loan Rejection Consultant Profile