Home Loan Tips and Tricks that One Need to Know
Posted by Arwind Sharma on July 5th, 2018
Picture this! You took all the pains to search for a good property, applied for a Home Loan to one of the top lenders, and yet your loan application was not approved!
What would you do then? Will you contact your lender to know about the reason for the rejection of the housing loan application? They won’t tell you the exact reason!
Thus, it would be better to know some tried and tested Home Loan approval tips if you want your Home Loan to get approved. Let’s know more.
Even before applying for the Housing Loan, you need to have an exact idea about your financial condition and bank balance which may let you repay the loan easily. The major constituent of the oan is none other than the Home Loan EMIs. Thus, you need to know if your income allows you to pay the loan EMIs easily. If you want to know how much loan EMI your current income can afford, you can use the Home Loan EMI calculator to know your exact EMI. The Home Loan eligibility calculator is another tool you can use to know an exact amount your income will allow to borrow. Knowing these factors will help you apply for an amount matching your salary so that lenders may approve it easily.
Once you are aware of the home’s cost that you intend to buy, your next move should be to arrange at least 20% of its value as the down payment. The concept is simple – the more you put as the down payment, you less money you will repay which will have interest cost as well. Putting down a higher down payment may also propel the lender to offer you a lower rate as they may not treat you as a risk to their businesses.
Keeping your Home Loan eligibility boosted is one of the ways to get your Home Loan approved. One of the easy ways to maintain a higher loan eligibility is by keeping your Credit Score higher. You can maintain your CIBIL Score at 750+ or more out of 900 by repaying all your existing debts such as Credit Card bills and loan EMIs on time. Lenders feel safe to approve the Housing Loan application of such borrowers having higher CIBIL Score. Thus, strive to maintain it at a higher level to keep your House Loan approval probability brighter.
If you think that you may be short on your Housing Loan eligibility even after following the discussed tips, you can also look for applying with a co-applicant to increase chances. You can get your spouse or parent as a co-applicant and if the co-applicant is earning a decent salary and has a great CIBIL Score, it can help you ask for a higher amount.
Borrowers should take utmost care while filling their Housing Loan application forms as an incomplete form with wrong information may let the lender reject the loan request. Your loan can be approved quickly if you provide details about your finances without making any mistakes.
The Bottom Line
No matter if it’s a Home Loan, if you can take care of the discussed factors, it can help you get an approval swiftly and help buy your dream home!
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About the AuthorArwind Sharma
Joined: April 15th, 2016
Articles Posted: 48
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