What Prevents People From Getting A Home Loan?

Housing loan companies, banks and mortgage companies primarily assess a customer's ability to repay while deciding on granting a loan. There are a lot of factors which can prevent you from getting a home loan. A person who does not have a permanent job and works on a contract basis or freelance basis may have difficulties in getting a loan. Even if you are having a business of your own, you must show that you are filing tax returns for three years to get a home loan. If you are a person who is not stable in a particular job and keep on skipping jobs or career paths, lenders will think twice before giving housing loans.

Age is also an important criterion for home loan. If you are close to retirement age or even above 45, you may not get a loan as readily as a 25-something individual can get. Also a person is not given the entire amount for the home as loan amount. An individual must have at least 5 to 10 percent of amount which he or she can pay as down payment. If there is not much savings in his or her bank account, lending institutions are wary about giving loans because they do not want to take a 100 percent risk. Also if you have criminal records or are staying in a 'black-listed' area, you are not granted a home-loan.

　　To add to the answer above, to loan is to borrow. to borrow is to pay. If you will borrow, you have to proove that you are a person that pays back what was borrowed. So if you have late dues, was put to collection, no bank accounts, no stable job at least for 2 years, no major credit cards, no credit history (at least 2 years), you can not be trusted - according to what you have.

　　Put it that you are the lender. If the person comes to you and say, "do you think you could lend me some money? I have collection problem, I have no credit cards, I have no bank accounts, I just started a new job and still on probation, I'm just me. So how much do you think you want to waste on me." I hope you got it. Good luck to you.