Tips for Getting Approval for your Home Loan
Post by : favouritehomes
The last two years has witnessed the lowest interest rates on home loans and a large inventory of unsold homes. Apartments have become more affordable and the best time to buy one is now while home loans are still at their lowest. For a first-time homebuyer, understanding home loan eligibility and how to enhance it is important. Some of the basic things that require understanding include CIBIL score, loan terms, income, down payments, repayment capacity, etc.
Getting an approved home loan can be stressful, so here are some tips to help you on your journey towards an approved home loan:
Before applying for a home loan, ensure that you have no pending debts – either on your credit card or other loans. You should have a good CIBIL score of over 750 points to become eligible for a home loan. CIBIL score calculators are available online for assistance.
In order to be eligible for a large home loan, you should have a steady source of income – either as an employer or employee. A stable income means easy repayment of loan, hence, a stable work profile is an important factor for loaner banks to consider.
Most banks approve around 80% of the home’s cost in the form of a home loan. You need to have a down-payment ready with you to furnish the remaining cost of your dream home. The down-payment adds up to a neat sum too and the higher the down-payment, the smaller the home loan needed.
Joint Home Loan
When opting for a joint home loan, you automatically improve your chances of a home loan approval. Loan application can be with a spouse or parent. With two people repaying the loan, it divides the repayment burden and offers tax breaks to both loan applicants.
Though a longer tenure means smaller EMIs, it also translates to greater interest paid out, but improves your chances of home loan approval. Also consider between floating and fixed interest rates on your loan as well as checking which bank offers the lowest home loan interest rates, lowest processing rates and any other hidden charges.
Lastly, don’t panic, just take your time to choose between loaner banks.