We all are aware of the rules, dos and don’ts of taking the loan. But there are certain circumstances under which people are eligible to avail home financing, they have good income and yearly income is also matching with the minimum criteria of the financial institution but, still they cannot avail this tremendous facility reason being the property is not eligible for the loan. So fellows! Let’s roll on to some scenarios under which loan taking becomes a bit difficult or almost impossible for the client:
Lease: sometimes the property in which one is residing since years don’t belong to him/her strange isn’t it? The actual meaning of which that client is just residing in that house but on papers that house is still not leased. Availing loan can be described under two broad categories one under which client is seeking loan in order to buy a new house (under this situation the new house papers will remain under the possession of the bank, till the loan repayment), on the contrary second situation is where client is taking loan on his house (where he/she is already living) and buying a new house? In both scenarios the property is mortgaged the only scenario under which one can mortgage brokers Melbourne the property is when the property is leased (on the name of the loan seeker). Usually in eastern countries like Pakistan and India people usually don’t complete such paper work and they just reside in the house (which is not actually on their name) as a result loan cannot be availed on such basis.
Condition and place of the property also matter a lot, for example if the property to be mortgaged is in some underdeveloped area or that property is not in a condition which can be relied on. Definitely bank won’t provide loan against the before mentioned property. When financial institutions approve a loan they mark the mortgaged property as an asset in their book (which means they would not want to own an asset which is damaged or not in a good condition) they have to keep this thing in mind that; if the client is unable to pay off the loan on time then they have to sell the same property and recover the amount of the loan at any cost (hence they inspect the property they note down every single details, area, place of the property, condition of the property and overall paper work in addition to this they also check the property for litigations and disputes). Disputed properties are no good for loans, so the above mentioned were some common situations where one can expect to be rejected for loan by the financial institution. Check this link https://melbournemortgage.com.au/buying-a-home/to find out more details.