The home loan is an essential part for an individual to decide on the home buying decision. The home loan eligibility depends upon multiple factors based on which the home loan approval of an individual is dependent. The loans can be availed for a tenure based on the age of an individual. The higher the age lower is the tenure being approved, while the lower the age higher is the tenure being approved for an individual. The loans interest rates charged depends upon the lender to lender and also the credit score of an individual. There are multiple ways in which the home loan eligibility can be increased. The home loans eligibility depends on the credit score, income of an individual, and age of an individual & stability of an individual’s work. Also, having proper income proof is necessary. People who hide their actual income and deal in black are the ones who are less likely to get the home loans approved. The home loans can be taken from any of the lenders of an individual choice, either from the bank or an NBFC. There are no restrictions on availing of the loan from a particular lender.
The individual should do a proper survey before availing of the loans from the lender. The survey relates to the lender’s background, interest rates charged by the lender, and processing fees charged by the lender, eligibility requirements of the lender & ratings and reviews given about the lender by their customers. The competition in the home loans market is extensive; thus, the home loan applicant has multiple choices to avail loan from any of the lenders. The applicant should also check for the documents required by the lender and should keep those documents handy before proceeding ahead with the home loans. The home loans can be approved within seven working days from submitting documents to the lender. The borrower can also go with the pre-approved loans if the bank agrees then. In the case of the pre-approved loans, the applicant does not have to submit the verification documents as it is pre-approved from the bank. Only the applicant has to agree with the terms & conditions and can avail of loans at attractive interest rates from the lender. A pre-approved loan is sanctioned faster than regular loans as the bank already sanctions the loan.
Ways to Boost the Home Loan Eligibility:
Good CIBIL Score:
The CIBIL score is a very important part of the approval of the loans by the bank. Bank expects a minimum score of 700 points before the approval of theloans. The application may be approved with a score lower than 700 points, but the interest rates charged may be higher for the loans. And in case of a extremely poor CIBIL score, the loans may also be rejected by the applicant. Thus maintaining a good CIBIL score can help an individual improve the chances of getting the loans approved.
Proper Documentation for the Loan Approval:
The applicant should make available all the necessary documents available to get the loans approved from the lender. The documents should be in proper sequence, and no documents should be missing in the set; otherwise, the loans may get rejected.
Provide Proper Income Proof:
The applicant should not be found hiding the actual income as it can lead to the rejection of loans. This particular point should be remembered especially by the self-employed persons. The disclosure of actual income and assets can help the bank know the actual financial condition of the applicant, thus making it easy for the bank to process the loans.
Avail Lower Amount Than Eligibility:
If the applicant avails a lower amount from the bank, there is a lesser risk, thus increasing the chances of getting the loans approved. If the applicant is found to be more demanding in the loan amount, then the loans may be rejected as there is a higher risk involved for the bank in case of disbursement of loans.
Take a Joint Loan in Case of Lower Salary:
Taking joint loans helps increase the borrower’s eligibility to avail of loans in case two persons in a house are working. The loans can be approved of the higher amount, and also, the approval is more likely as the dependence on the loan repayment is not based on a single person. Even in the case of an individual’s lower credit score, the other person can compensate for the score. Thus the chances of getting loans rejected are very less.
Getting loans approved is an easy process if the applicant follows proper norms for the loans approval. It is necessary to have proper documents in place, a good credit score, and also a proper source of income which should not be hidden from the lender; then, in that case, the loans can easily get approved.