By SITI NURHIDAYAH SARUDIN
hidayah@mystar.com.my

EVERYONE dreams of owning a home or a piece of land. However, this dream often fades with the reality of rising property prices and the uncertain economic situation, which is made worse by the high loan rejection rate.

Here are some factors that could hinder your loan approval:

1/You are a self-employed worker
Self-employed borrowers often face problems in getting a mortgage because they do not have a payroll statement that shows their ability to repay the loan at the designated time.

To overcome this issue, a self-employed worker should always keep a consistent financial record that adheres to accounting standards. Make a regular contribution to the EPF to convince the bank of your ability to repay the loan.

2/An inexperienced bank officer
The bank officer who manages your application is key to determining your loan application.

It is essential for loan applicants to select bank officers who understand the processes and requirements of each case. It is hard for someone to get a loan if the loan officer is not well versed with the loan application process.

3/The borrower's credit history
Credit reports have a variety of relevant information, including the borrower’s credit history and the debts under the borrower's name. The bank will carefully examine the borrower's credit history to ensure that borrowers are able to repay their loans.

Therefore, it is necessary for a loan applicant to make sure that they he has a good credit score and a consistent payment history. A bad credit record will result in failure to get a loan application approved.

4/Restrictions on loan amounts
The bank will set a minimum amount of revenue for a qualified borrower to get a loan, as the lender does not want to take the risk of the borrower not being able to repay the loan.

A loan applicant must have at least three to six months of work experience to be eligible to borrow. One way to overcome this hurdle is to get a surety.

However, you should let the guarantor know your ability to repay the loan as he or she will be liable if you fail to make the payments. The guarantor must have a strong employment background and sound financial record. The qualification of the guarantor will be assessed the same way as a loan applicant.

In conclusion, it is critical to have sound financial management to get your loan approved.

Want to contribute articles to StarProperty.my? Email editor@starproperty.my. [slider id='81590' name='StarProperty' size='full']