How To Assess The Issue Between The Bank And The Builder?
Only one particular bank is denying a home loan to a customer, in the project of the builder, saying that the bank has, at least for the time being, have stopped funding the project. How can we assess the issue between the bank & the builder, & be as... Read More
Only one particular bank is denying a home loan to a customer, in the project of the builder, saying that the bank has, at least for the time being, have stopped funding the project. How can we assess the issue between the bank & the builder, & be assured that in the future, the bank will not & cannot in any way have any litigation on the builder & the project?
- Sector-1, Noida
Well, there may be many reasons for a home loan rejection - some common and some not so common or lesser-known. Let's take a look at six uncommon reasons:
1. Builder not approved This is one of the most common but unexpected reasons for the rejection of a home loan application. Not all banks give loans against the property of builders. It is, therefore, critical to know from the builders themselves that which banks have approved them and which have not.
2. Builder approved but property not approved This is another unexpected reason for a home loan rejection. A builder, for instance, may figure in a bank's list of approved builders, but a specific project launched by him may not have been approved by the concerned bank.
In addition, there are likely to be cases where particular phases of a project (if it's a large one) may not have bank approval. Thus, to avoid unexpected home loan rejections, it's important to check that apart from the builder, the entire project - including its different phases - has got the necessary bank approval.
3. If the previous tenant was a defaulter Many housing finance companies (HFCs) these days blacklist both the defaulter and his residential address. Therefore, if you are staying in a house which is in a bank's defaulters' list because of the previous tenant who defaulted on a loan or credit card payment, there are high chances of your home loan application getting rejected.
However, even if a particular address is not in the defaulters' list, then there is a possibility that the very locality is not in the good books of the banks/HFCs because of some other reasons. Your loan application may get rejected in such a case.
Still not satisfied with the information may be our top legal expert in India can guide you better in your matter.
Answered on 20 Jul 2019
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