5 greatest obstructions in acquiring the Home Loan?

Admin| Last updated: July 25, 2017 | 0 Comments

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The house hunting is a tedious task which is both tiring as well as time-consuming for a person as he/she has to look for the different aspects while making a final decision. Have you find your dream home that is located in a safe and posh location? If yes then it is simply awesome!

The struggle of the loan sanctioning:

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Now, the real work starts and that is knocking the door of the different lending institutes that can pass your home loan application but this process stretches too long and you can never be assured of the fact that whether your application will get approved or not.

The bank checks for every minute details of the loan applicant and if they find something inappropriate then they are liable to reject the application. Of course, this process involves a lot of documentation that a person has to prepare in advance.

So, are you constantly facing rejection from the bank and are struggling a lot to find the financial institute that can make your way clear in having your house?

There can be a number of reasons that are responsible for rejection of your loan application and some of them are listed below:

1) A bad credit score:

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If you have already taken a loan for any purpose and your payment of the EMI’s are not consistent i.e. you failed to repay the amount on time then in that case, you have to forget the thought of loan sanction completely from your mind.

The bank first inspects the repaying capability of a person and if you are already possessing a bad credit history then it is next to impossible for you to get your loan passed from the financial institutes.

2) Not filed the Income Tax Return (ITR):

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For any loan whether it may be for a house or for the car, the bank checks the history of tax paying of the applicant. If you have not payed the tax and are skipping this for the past few years then the bank will take no time in rejecting your application.

They will obviously think that you are not punctual in filing your ITR that is a mandatory part for a person to disclose their earning to the Government and when you are not doing this then you might skip for repaying for the loan amount too.

3) Newbie in a job:

If you are a fresher and have just joined the company then the bank can also reject your loan because they will doubt job security and with this constraint, they will have suspicion on your repaying calibre.

You are required to serve a company for a good amount of years then only you are eligible for the loan else not.

4) Age:

If you are going to retire within the few years then your loan application will also have the chance of facing rejection from the banks.

There is a short-term loan option too that the lending institutes offers to the people whose retirement is near but in that scenario, you have to pay a huge amount every month in the form of the installments which can be extremely tough for you.

5) You are already a defaulter:

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You have not cleared the dues of your previous loan and have been skipping that loan for a long. The banks are continuously calling you for the repayment. To be precise, you are on the top list of the defaulters then there is no chance of getting your other loan passed.

So, these are the following factors that can be a greatest barrier for you in the loan approval process which you have to make up as soon as possible otherwise you have to drop the idea of having your own property.

But for every problem there is a solution and so for the loan approval. No need to get dishearten as there is something you can do with it.

What steps to take in order to get rid of the above obstructions?

  • For removing a bad credit score, you are required to pay all the EMI’s timely that will save you from paying the late payment charges by which you can earn a good credit score.
  • Be a little bit attentive and file your ITR every year that can provide you a good taxation history.
  • The age factor is completely a different thing but the bank checks for this too which bank provides the loan with a short tenure.


You are required to strictly abide the rules and regulations of the bank if you have borrowed an amount from them by timely making the payment.

 Author’s bio:

Peter Parker is the writer of this blog and a leading financial consultant who assist the people in acquiring the best housing loan in Singapore. He has helped a number of people who are facing trouble in the loan sanctioning.


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