Top Reasons for Declined Housing Loan

Top Reasons for Declined Housing Loan

Income or Source of Income

The monthly income shows the capacity of the buyer to pay the obligation in paying monthly amortization of their loan term. The shorter the term, the bigger the monthly income/ other income sources it will require because of bigger monthly amortization.


This thought "kaya gusto namin mag-short term ay para mabilis ang pagbayad, pwede namang kaming mag-sakripisyo for 5 years", does not apply in bank consideration for loan approval because it's not the willingness to pay but the capacity to pay of the buyer as their first consideration.

This also means, that you need to have an established employment during loan approval.

Age

The age is another consideration, usually the limit is 45 years old and above especially for long term financing like 15 years or more.

At Pag-IBIG Financing, a member should not be more than 65 years old at loan maturity while at Bank Financing the applicants should not be more than 60 years old. This means we should count years starting at approval of loans and not during reservation of property, because down payment might be payable for 12 months to 24 months and sometime loan processing takes some months.

Delinquent Credit Cards and Bouncing Checks

Delinquent credit cards and bouncing checks are other reasons you might be declined of housing loan. Depending on the severity of your obligation but all those delinquent cards or bouncing checks should have been cleared first before you might be given approval of. Existing housing loan is also a factor depending on your payment record and balance payables.

Cases involving estafa

The case involving estafa is a major reason you will be declined of any loans.

An additional, here are the C's of Credit that affects housing loan approval: Capacity, Character, collateral, credibility and condition.


Read also: Cs of Credit for Housing Buyers



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About the Author

Jerome Morada

Realtor & Webmaster

Good day! I'm Jerome, your friendly Real Estate Broker with PRC License 0012399 and HLURB registration. Just sharing simple tips, please share if you find it useful! Thanks!

2 (mga) puna:

  1. Hi there,I have a few question. Im planning to cancel my downpayments, how long would it take to process refund of it? Can i refund it on full amount or with charges? What are the procedure to make a cancellation request? Hope for your reply. Thanks!

    ReplyDelete
    Replies
    1. Hello po! Regarding a refund for Downpayment we have Realty Buyers Installment Act or RA 6552, please read the text of the law in this url below:

      http://hlurb.gov.ph/wp-content/uploads/laws-issuances/mandates/ra_6552.pdf

      If you are qualify for a refund according to above link (Buyers Installment Act), actually maraming charges/fees ang ikakalatas sa inyo ng developer, depende po yan sa bawat developer.

      For cancellation and pull out of your documents, you need to submit at developers office a Request Letter to Pullout, depende po yon sa developer kung mas mabilis silang mag action lalo na kasama ang process of refund.

      Mas maigi kung tanungin nyo po muna ang inyong developer kung magkano ang i-charge nila bago kayo magdecide. So far, wala pa akong client na nag pullout at nag-refund kaya hindi ako makapag-bigay ng estimated value.

      Salamat.

      Delete

 
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