In the first part of our post, we discussed the common reasons your home loan is rejected. Now, there could be unexpected reasons why it happened. What are they?
You Have the Wrong Property
As we've said before, you must have property to get a home loan. And that property has to be the one that's in the contract.
Thus, if you've received approval for a home loan for an apartment in one neighbourhood but you've bought a house somewhere else, your application could be rejected. If a bank can't find the property they've approved a loan for, they won't accept it.
Your Lender Might Have Changed Policies
Also, a bank might have had special policies for a certain type of loan, but then changed them. If that happens after you've already been pre approved for a home loan, your application will be rejected as well.
You'll know if this is the case if your approved home loan comes with a "conditions apply" note on it. You should read it carefully, as it will specify what you have to do before you can draw on the loan.
You Have Suspicious Records
If your home loan application contains suspicious records, your lender will want to know why. For example, if you don't have any savings to your name, but you're suddenly applying for a home loan, they're going to question the circumstances under which you can make the monthly payments.
In cases like this, the lender will reject your application because they don't want to take any risks.
How to Improve Your Chances of Getting Your Home Loan Approved
Even if your application is rejected, there's still hope. You could still get a home loan in time, as long as you follow these tips:
- Find out why you've been rejected. Talk to the people who've scrutinised your application and ask what you need to do to make sure you get a home loan in the future.
- Check if you're eligible for a different type of loan. In many cases, you'll need to look for a different type of property, or you'll have to apply for a smaller loan amount. You may even have to wait a little before you can apply again.
- Send your application for a home loan to a different lender. This way, you'll have a few chances to get a home loan before you run out of options.
In fact, you don't have to give up on your dream to own a home because one lender turned you down. There are plenty of other home loan lenders out there, and you just have to find one that will approve your application.
Even if you didn't get a home loan, it doesn't mean that you don't have the financial capacity to get one. That's why it's always a good idea to talk to your bank and ask what they expect from you in order to secure a home loan in the future.
In most cases, it's just a matter of finding the right property and applying to a different lender. There's always hope if you know what you're doing, so don't give up just yet.
Get the best home loans in Sydney here at Wealthy You. We have been servicing Sydney for almost ten years now and we offer various mortgage solutions to meet your specific financial needs. Get in touch with us.