Anyone who has ever applied for a home loan must be very well aware of the practice wherein lenders ask for bank account statement. They could ask for bank statements from anywhere around from six months to few years. Now, the question that may pop-up in many minds is whether the said statement has any say in home loan approval or it’s just another formality.
Well, bank account statements have a good say not only in home loan approval but also in the amount to be sanctioned for the same. Here are the few things that lenders analyse in a bank account statement.
1. Nature of Debits & Account Balance
A Bank Account Statement speaks about once financial health and very well reflects the saving habits of the holder. Say, if your statement shows regular debits towards mutual funds and like, it indicates how good an investor and financially discipline the account holder is. On the other hand, if a lot of debit or credit card transactions especially of high amount are towards online purchases than it may have an adverse impact on one’s overall loan eligibility.
2. On-going Loan
A look at one’s bank account statement and noticing same amount being debited at regular intervals of time, the lender can easily detect the existence of any previous loan being serviced. The presence of any prior loan becomes an important factor in deciding one’s loan eligibility. Home loan eligibility gets reduced with any previous loan being serviced.
3. Cheque Behavior
Value and volume of cheque returned or deposited speak a lot about one’s financial health and business standing. For example, if the account statement shows debit balance regarding bank charges for unpaid or bounced cheque it would paint a doubtful picture in front of the lender. He would avoid giving a loan to a person who issues cheque without even inquiring presence of adequate balance in his account.
4. Verifying Nature and Level of Business/ Job
In the case of a salaried person, the lender will be able to confirm whether the proposed salary in the income tax return is being credited or not in his bank account. If yes, then his salary is genuine or otherwise there is something suspicious. Same is the case with self-employed individuals; the level of their business activity will be tallied with income credited and declared income tax return.
