Factors That Keep Your Home Loan From Being Sanctioned

Owning a house is one of the biggest dreams that a person has. Everyone works hard enough to save money for a down payment. However, when you are about to apply for a home loan, you get turned down by your bankers. This mostly happens because lenders check your credit reportoften, your income and other essential details for deciding whether you are a good candidate for a home loan.

Here are some reasons because of which Cibil reports reject your credit worthiness.

Checking Credit Report

In case you have taken a lot of loans in the past or had taken on a number of credit cards, then your past loaners must have gone through your Cibil report. If you had applied for multi credit facility particularly for loans that were unsecured simultaneously, it might have sent a warning signal to your loaners. Numerous enquiries can work to bring down your credit score. It could be a problem for you when at the time of applying for a mortgage. In order to evade this problem, you should not apply for credit cards or loans at least 6 months before applying for a mortgage.

Poor Credit Score

People with poor credit history are often rejected by lenders. Poor credit score refers to issue of late payments, payments which were missed and similar problems. Also, your Cibil score would not be very good if you had always been nearing your credit limit on credit cards. Having a large number of personal and unsecured loans on your history of debt against secured ones such as car loans, could be held against you.

One type of credit or no credit

A lot of Indians still believe that a life of credit is a bad idea and therefore they do not take out loans or credit cards. This is an indication that you are not responsible enough to handle clauses of loans. It may not send out the signal that you want it to send out- that you have no credit history and hence are trustworthy. Therefore, you should have both unsecured and secured loans and must have met the criterion for repayment.

Mismatched Identity or Disputes in Cibil

There may be some problem with your CIBIL report because your past lenders may have provided incorrect information to them. In case there is a massive fault, you may be a victim of mismatching identities. Therefore, you should keep checking your CIBIL scores frequently enough to get these discrepancies corrected in time.

Not checking your credit score might have a lot of undesirable effects. For example, a credit card is one of the most common banking instruments in determining credit history. Indiscriminate usage would lower your score of credit and even spoil your chances of getting a home loan or get it at a very high rate of interest. Consider this instance that your friend and you apply for a home loan of INR 50 lakhs payable over 20 years. You got your loan at an interest rate of 10 percent per year whereas your friend got it at 12 percent per annum. A reason for this discrepancy may be that your friend’s credit score was lower. This 2 percent difference in interest rate could lead to a difference in interest payment of almost Rs 8 lakhs!

There a many ways in which your credit card could affect your chances of getting a home loan.

Using a lot of credit cards

If you have a number of credit cards to your name then it indicates that you have an appetite for credit. Carrying around a number of multi-coloured cards may seem fun but they can be a very bad signal as they show that you are a credit hungry person. An appetite for credit may lower your credit score and diminish your possibilities of getting a secured mortgage loan for house for sale in Pondicherry.

Carryover of balance frequently

Companies that offer credit cards make it easy for subscribers to pay a token amount and carry over their balance for the next period. By carrying over your balance, you would be losing out on free credit periods and paying a very high rate of interest. There are many hidden implications of carrying your balance over. They act a little too much on your score of credit as your outstanding loan amount rises and the defaults would show on your score and imply that no lender should deal with you. Therefore, your carried over balance may prevent your home loan application for house for sale in Pondicherry from getting passed.

High Usage of Credit

Using your credit card to the hilt may also adversely impact your credit score. For example, if a credit of Rs 3 lakhs is your ceiling on your credits and you have used it up to Rs 2 lakhs, then the credit rating agency might take that as a negative. To keep a healthy credit score, you should use only 30 percent of the credit limit allotted to you. On the other hand, non-usage of credit cards would not help to build up a payment history of credit and therefore, it will not be good for you. Therefore, you should use your credit card in moderation so that you can get a home loan at an affordable rate without hassles.

Credit Portfolio with a lot of Unsecured Loans

Your credit portfolio must have a healthy quantity of both unsecured and secured loans. If you have only unsecured loans such as personal loans and credit card balances, then your credit rating will go down. Therefore, you should balance your portfolio with secured and unsecured loans equally so that you don’t face any glitches.

Past Discrepancies that were unsolved

There may be some discrepancy in your credit rating or some disagreement about some charges levied by your bank. If you do not solve these disputes and keep from paying for them, then it shows up as outstanding in your credit account. This is classified as an amount for default and might blemish your report of credit. Therefore, you should get these discrepancies solved so that it does not tamper your credit worthiness and keep you from getting your dream house.

Highest Rental Yield In Chennai In Sholinganallur

Sholinganallur is already on the property radar of house hunters as evident from the rise in rental and capital values of the area. The rental values increased by almost 15 percent whereas the capital values increased by 9 to 10 percent roughly. In the first quarter of 2013, per square feet price stood at Rs 4000 roughly which jumped to Rs 4600 roughly in the first quarter of 2014.

What are the main determinants of Sholinganallur’s popularity in the realty market?

Availability of jobs has uplifted the area’s real estate market through establishment of a preferred investment and rental choice. The IT corridors are near it which has led to an increase in the values of property in the capital market. Not only that, if you want to earn on lease house in Chennai Sholinganallur, then you would be in the top locality of Chennai which has highest rental yields.

If you invest INR 34 lakhs for a 2BHK apartment of 1000 square carpet area, you would manage to make Rs 10,000 to Rs 20,000 through monthly rent, based on the actual location of your apartment. Brokers reckon that for a fully furnished apartment with 1900 square feet carpet area which is located ideally, an amount as hefty as Rs 75,000 can be charged for it. If such a house has to be bought, then an investment of Rs 60 lakhs to Rs 90 lakhs needs to be pumped in. If you furnish it well enough, then you can rely on good returns in the rental market.

Price

A 2BHK apartment which is spread over 950 square feet is priced at roughly Rs 32 lakhs. The price of an apartment measuring 1600 square feet can be as high as Rs 80 lakhs. If you want to choose a 3BHK apartment, then you will be charged anything between Rs 35 lakhs to Rs 1.6 crores. A variety of residential property is up for sale here- plots, villas and residential houses. Paying guest accommodations, multi storey flats, studio apartments, villas are available for rent in Shollinganallur along with house for lease in Chennai. An apartment in a multi-storeyed complex would cost you anything between Rs 5000 to Rs 50,000 in a month as rent.

Most of the accommodations can be rented within Rs 14,000 to Rs 26,000 in a month. These are mostly semi furnished 3BHK apartments. Also 2BHK apartments ranging between 600 square feet and 1200 square feet are also available. For 3BHK units, you would have to settle for 850 square feet to 2100 square feet.

Shollinganallur is a promising neighbourhood for both prospective tenants and investors. It is the best place for rapid appreciation of capital value along with rental demand.

Why choose Sholinganallur?

Connected via the East Coast Road and OMR to other areas in the city, the area’s geographical location is quite attractive. Not only for residential properties, Sholinganallur is very attractive to corporates as well. In terms of physical and social infrastructure, the area has a lot of reputed colleges and schools, eateries and malls. The recreational spot, ECR Beach is also very close to Sholinganallur. Location wise, Sholinganallur has immense potential for appreciation. Closeness to the employment catchment area, Sholinganallur has attracted a number of tenants and buyers. Even single professionals turn up to buy or rent houses in this area for settling down. Ways to improve the area include flyovers for decongesting traffic during peak hours. Parking and traffic is a main concern point of the area. Auto rickshaws and local buses are the most chosen medium for commutation. The closest railway station to Sholinganallur is Velachery which is roughly 12 kilometres from here.

The area is a preferred rental location as evident from the annual yield of Rs 2.4 lakhs almost. Real estate investment made around and in IT destinations has always produced high rental returns and capital returns. The area has seen ever growing demand for rental accommodations and has been consistently features in the top 5 preferred localities in Chennai by various lists. Located along the Old Mahabalipuram Road, the area is a catchment area for IT professionals who work in the companies based out of the IT industry nearby.

The annual yield received by Sholinganallur is 4.35 percent in the January to March quarter of 2014 for rental properties. This has helped the area secure the top spot among areas preferred for rental purposes. In terms of rental yield, for 1000 square feet flat that you buy for Rs 50 lakhs in the area, you can earn almost Rs 2.4 lakhs in rental income. Therefore, you would be able to cover the cost of buying the apartment in no time. For the first time, Sholinganallur has been included in the top rental yielders list. There has been a consistent and regular rise in values of rent in the area. For example, the average rental rates in the area were between Rs 12,000 to Rs 13,000 in the second quarter of 2013. It went up to Rs 15,000 almost by the end of the third quarter of 2013. For the same property, you would have to pay Rs 17,000 in a month in today’s times. The area has to offer 3BHK flats of 1200-1800 square feet which will fetch a rental income of Rs 15,000 to Rs 24,000 in a month roughly. Flats in the 2BHK design can also be found here in the range of 800 to 1100 square feet. The rental value of these properties is between Rs 10,000 and Rs 16,000.

The closeness to IT hubs such as Gateway International, Siruseri IT Park and PSSB Millennium is what has triggered the demand of rental properties from IT employees. Moreover, the area is well connected to other parts of the city through important roads like Velachery Main Road, East Coast Road and Link Road. Via Old Mahabalipuram Road, the airport is only 20kms away from Sholinganallur whereas the central rail station is only 25 kms away roughly. You can find house for lease in Chennai here as well.