APA JADI: If My Loan For A House Purchase Got Rejected?

We all dream of acquiring our perfect dream house as kids, and they’re usually backed by our innocent and unwavering sense of happiness and dreams. As we grow older, we realise that owning a house is a bit more complicated in practice. For example, to apply for a loan and purchase a house, you need to have a stable income, little to no debt and good credit score.

Moreover, you need to ensure that you plan ahead and have saving in check just in case of emergencies. But then, you apply for the loan and find that you’ve been rejected! What then?!

Haaa, so Apa jadi if like that? Here’s what you can do! 


1. Know Why You Got Rejected

The first step to finding out why your loan for a house purchase did not get approved is to assess the factors that relate to it. More often than not, it’s because of your credit score. Your credit score determines how likely lenders are to approve a loan to you based on five conditions:

1) How efficient you are at paying your bills

2) Amounts you owe 

3) How long you’ve had your card

4) How many commitments are tied to your card

5) The number of credit accounts you’re registered to

Also, know that ‘no’ credit score doesn’t necessarily mean you will instantly get approved. This is mainly because having no credit score will mean that creditors will have nothing to rely on regarding your spending habits. 


2. If It’s a Debt Issue, Strategise a Pay-Off Plan


The weight of credit card debts can get insanely heavy at times, and that’s understandable. Sometimes, not everyone has a choice. Certain mandatory commitments can be daunting to an individual, especially fresh grads or newly-made parents. 

That being said, it does not have to stay this way! As difficult as it is, there are certain steps you can take to ensure your debt does not grow beyond what you can handle. 

  • Budget yourself – Set up an amount of spending you need at the beginning of each month and categorise it by bills and personal spending. See what you can put out to minimise spending. 
  • Put away your credit cards – The most significant way to stop spending on your credit cards, is to simply stop using them. It can get daunting at first, but gets better in time. 
  • Save as much or as little as you can every month – When you’re in a position of debt, it’s essential that you limit your spending. Focus on your priorities and clearing off your outstanding debt before you leisurely spend. 
  • Adapt your lifestyle – Sometimes, a lifestyle shift is necessary in the events of limited spending. Like stopping the habit of relying on credit cards, this is a daunting task. However, it will make it easier for you in the long run, and just because you make certain alterations to your lifestyle doesn’t mean you have to sacrifice your comfort, you just look for different alternatives.


3. Try Other Alternatives

house loan

Ask yourself “Do I really need to buy a house right now?” Instead of opting to apply for a loan for a house purchase, maybe you can explore different options instead. There are several things you can do: 

  • Consider renting a house, although the prospect of owning a house is exciting, renting comes with several benefits such as access to amenities, no down payment and no maintenance cost or repair bills. 
  • Look for different locations. Consider opting for a different location with more affordable rates if you’re really set on buying a house. Sometimes, you can find hidden gems if you look closely. 


If you’ve heed our earlier advice, then you’ll probably be ready to apply for your next house loan in no time! Furthermore, if you’re looking to invest in a good property, why not ask us for insights?

We can help you out!

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