Applying for a home loan can be an enticing but daunting task. Buying your dream house for the first time or thinking of changing your old home, getting a home loan is mostly the pivotal step.
Unfortunately, innumerable applications are declined because of several reasons, making buyers feel irritated. Taking a deep dive into the common reasons affecting your home loan application can help you with a clear understanding of the process.
In this blog, we will talk about the reasons behind the apparent home loan rejection and how choosing the best home loan broker in Sydney can boost your chances of application approval.
- Poor credit score: When buying anything new, be it an electronic device, car, or even home, the candidate must maintain a good credit score as it shows how trustworthy you are as a borrower. But, many people often neglect this point, resulting in home loan rejection. If your credit score is less than the desired number, there is a significant chance of home loan rejection.
- Tip: Consider your credit history before applying for any home loan. If it is not so good, then try to improve it. Also, pay off your outstanding bills or instalments on time. Refrain from late payments. Key Partners Finance brings you certified finance brokers in Parramatta who can provide complete assistance on how you can enhance your credit score.
- Inadequate income: Lender expects the assurity on your repayment ability. If your earnings are low or you are in an unstable work situation, your home loan application may be rejected. Individuals who own their businesses or people with variable incomes may need help getting a home loan from the bank.
- Tip: Make sure to be honest about your salary while filling out the documents and disclose the exact employment history. You must give more precise details about your financial records if you are an entrepreneur. If you consult any home loan broker in Sydney, they can guide you with all the documentation and showcase them in a way that increases your chances of approval.
- Incorrect Paperwork: If your documents do not hold accurate information or any document is missing from the file, your application has a greater chance of getting rejected by the lender. The person granting you the home loan needs proper documents such as pay stubs, employment history, and credit score. Therefore, if you hide any information during the process or forget to submit the required documents, your chances of approval become less.
- Tip: Go through your document file several times. Check all the documents properly before submitting them on the portal to ensure they are correct and complete. Choosing an experienced home loan broker can be a good decision, as they can make this process smooth, guaranteeing all the documents are in order and submitted or uploaded accurately.
- Age factor: Lenders would be quite doubtful in approving the home loan application if the applicant is retiring at some point. The loan provider hesitates to grant you the loan as he is unsure about your repaying capacity. Therefore, the applicant’s age plays a crucial role in the case of a home loan application being flagged.
- Tip: If you are a senior citizen or retiring soon, go for a short-term loan or make sure that you have enough savings to pay the monthly instalments. However, a home loan broker will provide complete assistance in fulfilling your lender’s expectations while considering your age.
Unlock your dream house with Key Finance Partners.
Unapproved home loan applications can be distressing sometimes, but partnering with Key Finance Partners will allow you to meet our experienced, knowledgeable home loan and finance brokers in Parramatta. They can be a key to your dream house.
Our company understands the difficulties that small business owners or other entrepreneurs face while applying for a home loan. However, our skilled and trustable finance team is dedicated to streamlining the home loan application process and providing necessary guidance to the applicants regarding credit score improvement, lessening debt, employment stability, etc.
Our expertise in the following aspects makes us one of the top-notch finance companies in Parramatta, Sydney:
- Experienced team of finance brokers.
- Proficiency with complicated lending processes.
- Strong relations with loan guarantors.
Our finance broker in Parramatta will assist you throughout the lending process, making you an eligible applicant and offering you a significant chance of approval.
