Reasons Which Can Lead To Rejection Of Your Home Loan Planning to buy a new house? Nothing is more pleasurable than having a dream home which perfectly fits into your budget. However, this beautiful dream can get shattered if the bank rejects your home loan. It becomes really hard to digest the rejection and move from one financial institute to the other for the approval of the loan. So, it is better to be careful in advance, than searching for new options after rejection. If you have knowledge about the common reasons which may lead to rejection of your Hawaii home loan, then you can take the precautionary measures to avoid slipups. Sometimes, the loan gets rejected for an unexpected reason, but there are certain things which normally cause the disapproval. Let’s have a look at them in detail.
1. Bad credit score- Bad credit score is the outcome of bad credit history which is the most common reason for the rejection of a loan. Delay in the repayment of a loan, non-payment of credit bills, too many enquiries to get a loan, etc. can lower down your credit score. When you apply for a home loan, the financier doesn’t only consider the valuation of your home and your income, they also pay attention to your credit record, as it showcases your past financial behavior. Their decision to approve the loan is