Most home buyers finally find the right property after months of searching. After that begins the quest for the right home loan. Now all you need is a suitable lender who would finance your purchase. But what happens if you apply for a home loan and the bank rejects your application?
Real estate has become one of the most popular channels of investment in Australia. However, buying a property is no mean feat and a lack of funds can be one of the main reasons that can hold you back. So, most buyers resort to a home loan.
Apart from keeping you away from your ideal home, a rejected home loan application can also leave a black mark on your credit file which can further jeopardize your chances of getting a loan approved in future.
If you are looking forward to applying for a home loan, you need not worry. Different banks and lenders have varied lending requirements. Hence, one bank rejecting your loan application does not mean that others will too. If you are willing to do your research, you will most likely find a loan suited to your requirements. Your mortgage broker can be of immense help in this regard.
Before you narrow down a lender, make sure you are well aware of all the criteria they use to evaluate your application. Most of them have restrictions on the size of the property, the maximum amount they can lend, the location of the property, and so on. The key is to jot down your requirements and find out a lender that perfectly fits the same. That requires a lot of shopping around so that you can find the right one.
To help you be prepared in advance, the given infographic is going to highlight the main reasons why your loan could get rejected.