How to Overcome the Common Hurdles Faced during Housing Loan

Getting home loan is one of the lengthiest processes in one’s process of owning a home, but it is quite simple with certain predefined steps, but the matter of fact is that these predefined steps also face numerous hiccups. The financial institution has its own criteria to facilitate loans to any individual. The article is all about the hurdles that people generally face and the ideas to resolve them.

Damage Credit Score

It does not matter how loyal you are as a citizen, but a small default in your last credit will debar you from getting the loan. In case you already have loan going on and the monthly repayment amount is more than 45% of your monthly income, you are not going to get a loan.


If you see that any loan amount like car loan EMI or credit card EMI is ongoing then simply repay the minimum one completely and see if the debts can be consolidated for a lower payment. If yes, then it is advisable to talk to your loan officer and rework on the ratio with pragmatic figures. In such cases, most of the loan officers can advice on which loan can be worked upon so that your current loan request can be processed.

This one can be the most annoying for borrowers. Let’s say your lender asks your yearend pay stubs, showing your total yearly income. But for any reason, this year shows lower income than previous years. So, the lender asks another document based on this information, needing a document about the explanation about the lowered income.


Having a few resubmissions (about three) to the underwriter during your loan process is quite normal. But if it becomes too cumbersome, perhaps canceling the loan and starting over fresh with clearer direction can help fix a runaway lending laundry list.

Undocumented Funds

In case you run your own business sometimes any incoming fund without having proper documents cannot be taken in to account so as to make you eligible on a particular loan amount.


Never put any fund in your bank account, which you think would be difficult for you to document. Alternatives comprise using another asset account without the deposit provision, or procuring documented gift funds.

These are the common hurdles that you face in any loan process, but it all depends on how you decide to tackle when a door closes – there are many other doors that the nature opens.

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