News & Articles What To Do after Your Housing Loan is Rejected
What To Do after Your Housing Loan is Rejected
1 Oct 2015
Nobody likes it when their mortgage loan application is rejected. It’s truly a disappointing experience but half to two-thirds of all home loan applicants will have their applications rejected eventually, as banks are extremely strict on home loan approvals, even more so when the economy is slowing down.
The important thing is to not despair and follow these simple steps to improve your chances of securing a loan at the next attempt:
1) Determine what was wrong with your application
Try and speak to the bank officer who handled your loan application and find out exactly why your loan was rejected. A few things can go wrong, including incomplete documents, insufficient income, inability to prove your income and poor credit history.
2) Try and fix whatever is wrong
If for example, you have a poor credit history, try to settle as many of your debts in a systematic and disciplined manner to get your finances under control.
If the problem is related to your lack of sufficient income, consult your bank officer if it’s possible to apply for a lower income range home loan and try again. Alternatively, you can request for a lower financing margin. However, keep in mind that not all problems are easily solved, but try your best.
3) Try to renegotiate a lower property price
If possible, go back to your property seller and negotiate a lower price on the piece you want to own. Alternatively, pay a higher percent of down payment, so that you don’t have to take such a large loan.
4) Request information on your credit history
Check with both CTOS and CCRIS about your current financial status and obtain credit card statements from your bank. Check that everything is in order and there are no mistakes in the amount charged to your credit cards. Make sure the payments you’ve made on your loans have been accepted and recorded correctly.
5) Try to obtain a loan application review
In certain banks, you are allowed to appeal your rejection. This is your chance to ensure that you improve on the mistakes you’ve identified, especially if you’ve made an error on the paperwork.
6) Try applying for a loan again
There are two ways you can do this, either apply to the same bank for a smaller loan, or try applying to a different bank.
7) Wait Patiently
Sometimes, factors like a slow economy is beyond your control, so what you can do is wait until things improve and banks are more optimistic about handing out loans.
(中文版请看这里:http://www.durianproperty.com.my/blog/article/1054)
The important thing is to not despair and follow these simple steps to improve your chances of securing a loan at the next attempt:
1) Determine what was wrong with your application
Try and speak to the bank officer who handled your loan application and find out exactly why your loan was rejected. A few things can go wrong, including incomplete documents, insufficient income, inability to prove your income and poor credit history.
2) Try and fix whatever is wrong
If for example, you have a poor credit history, try to settle as many of your debts in a systematic and disciplined manner to get your finances under control.
If the problem is related to your lack of sufficient income, consult your bank officer if it’s possible to apply for a lower income range home loan and try again. Alternatively, you can request for a lower financing margin. However, keep in mind that not all problems are easily solved, but try your best.
3) Try to renegotiate a lower property price
If possible, go back to your property seller and negotiate a lower price on the piece you want to own. Alternatively, pay a higher percent of down payment, so that you don’t have to take such a large loan.
4) Request information on your credit history
Check with both CTOS and CCRIS about your current financial status and obtain credit card statements from your bank. Check that everything is in order and there are no mistakes in the amount charged to your credit cards. Make sure the payments you’ve made on your loans have been accepted and recorded correctly.
5) Try to obtain a loan application review
In certain banks, you are allowed to appeal your rejection. This is your chance to ensure that you improve on the mistakes you’ve identified, especially if you’ve made an error on the paperwork.
6) Try applying for a loan again
There are two ways you can do this, either apply to the same bank for a smaller loan, or try applying to a different bank.
7) Wait Patiently
Sometimes, factors like a slow economy is beyond your control, so what you can do is wait until things improve and banks are more optimistic about handing out loans.
(中文版请看这里:http://www.durianproperty.com.my/blog/article/1054)
Source: DurianProperty.com