Owning a house makes one proud. For this to happen either the savings should be high or loans need to be taken. As per average salaries present in organisations, home loans are the important source of finance for purchasing houses. Many a time applications given for loans are accepted after scrutiny but they are also rejected. When applications are accepted there are no issues but if rejected then there are problems. So it is necessary to apply as per requirements and ensure there are no heartbreaks for the same.

Certain important points are observed in the documents about the property. The following are a few areas which are to be cleared about the property:

1) Title Deed: The property should be hassle free and no strings should be attached to it. There should be so much clarity that once the loan is passed it should be immediately registered in the name of the loan taker.

2) No Objection Certificate: The builder or seller should give NOC stating that he has no objection in regard to selling the property.

3) Age of property: The completion date should be clear

4) Construction Quality: A certified expert should attach his opinion about the quality of construction.

5) Locality: There are different reasons for loan rejection & one important reason is locality as it gives an idea of Army area, land acquired by Government etc.

6) Legal clearances: The municipality or any government department under which the property falls, a concerned certificate should be attached.

Another factor due to which loan rejection takes place is records of the loan seeker

1) Undisclosed previous loans: If the loan giver gets a doubt that something is hidden in the disclosure then applications are rejected. In this age of CIBIL scores and connectivity between various banks, it is difficult to hide facts. So the disclosure should be full & factual

2) Poor credit score: CIBIL score is one of the most important factors in accepting or rejecting a loan. CIBIL is an authorised body whose ratings are accepted by all. So higher the scores more chances of getting loans & vice versa.

3) History: The previous record of loan seeker in regard to repayments & settlements of previous loans is very important. A frequent settlement or not repaying in proper time reduces chances of getting loans

4) Unpaid dues: If one loan is already present and we are seeking another, then chances are bleak

5) Address in defaulter’s list: The person should in no way be present in loan defaulters list as otherwise chances of the application being passed are negligible.

There are a few more reasons like present job, standing as guarantors for others loans and that person defaulting and indirectly the responsibility passed on to the guarantor, age factor, filing income tax returns also are very important.

All said and done, documentation and facts stated should match with reality when verification takes place, otherwise chances of a loan application being accepted is less.