There are a few reasons behind a mortgage loan application being rejected and the undermentioned are three ways to reduce the chances of home loan rejection.


1.Document your income: If in case your income is not sufficient enough to afford a specific loan amount you are sure to be rejected. And in case you have off-late changed your line of work and from being a salaried individual you went on to become a freelancer, your loan application is very likely to be cancelled. Sometimes you have all the cash on the world and yet the source of income is not documented properly, once again you stand the chance of your mortgage loan being rejected. Therefore it is always sensible to have your income properly documented. You might be under the impression that you are saving a hell of a lot of money by not really claiming your tax but is that really the case? In fact by doing something of that sort your credit history is being hampered and your credit ratings will suffer. Make sure to maintain a good credit history by maintaining all your income proofs and tax details.


2.Credit problems: This is perhaps the most crucial factors that decide whether your home mortgage loan approval will be done or not. The lenders look into the credit history of an individual before they approve of a loan.Credit Score is a deciding factor when it comes to loans for sure. Banks and other financial institutions do not sanction loans to people, whose credit rating is less than 750. In order to avoid that, all you have to do is to repair your credit history. You can’t do that overnight, however, you have to do it slowly and steadily. In order to do it, the first thing you need to do is just pull up your credit report and check on your credit score. You have to curtail your habit of making purchases on credit and make sure you never go above the credit limit that has been granted to you. Lastly you have to make an effort to pay off your credit card bills on time without delay so that any late payment fees are not levied.

3.Unfavourable debt to income ratio– Sometimes a decent income might not get you a nod as far as the approval of the loans are concerned. Lenders look at many factors while approving a loan application and one such factor is the debt to income ratio. This is nothing but a calculation in order to check whether your debt in the market is more than what your income is, if it is then what is the percentage of it?And if this number is more, the chances of you getting a loan is reduced. Hence it is advisable to keep a check on what you spend on. Make sure not to use the credit card too often, incase there is any debt, it is always good to pay them off so that the credit ratings do not suffer and your debt to income ratio too is normal.