Factors that determine your eligibility for a home loan

Every loan provider, whether it be a bank or a financial institution, offers a home loan. But before offering a loan, the credit eligibility of a borrower is screened well. This is essential because a home loan is the most valuable form of loan. The amount involved in a home loan is huge as compared to a personal or a car loan. The financial institutions offer almost 75-80% of the entire property cost. The rest of the amount is paid by the borrower as a down payment. The home loan is a long-term loan that can last more than 20 years with a loan amount exceeding up to crores. The risk is high, so the eligibility criteria are higher too. The housing loan eligibility criteria depends upon various factors. You need to work on your factors well to get an easy approval and a low rate of interest. Here are some of the factors that are important for getting a home loan.

Credit score: A good credit score indicates good credit health. Based on a good credit score, the eligibility of an individual is judged by the loan provider. If you have a good credit score, you can easily get a home loan approval as well as a low rate of interest. It will help you explore the best home loan products and get the best deal. For a home loan provider, a good credit score means a borrower can handle the loan on a good note.

Income: If you wish to repay your home loan on a good note, you need a good income. Income stability is very important that you need to maintain. This is why people take time to buy a home. You must increase your source of income so that the loan provider can ideally trust you with such a huge amount of money.

Documents: You need all your documents in the right order. If you miss out on one, the entire process will be delayed.

Property: The type of property plays an important role when you lookout for a home loan. A good property is easy to recover at the time of default. If you go for the right builder and location, you will find your loan provider approving your loan easily.

Finishing up

Increase your housing loan eligibility with a good credit score and a high income. Make your home loan affordable with the help of the best eligibility criteria.

Comments

Post a Comment

Popular posts from this blog

The Benefits Of Joint Home Loans

Image
Partners that borrow together, stay together. It is the time to borrow along with your partner, so that you can work on your credit history well, as well as bag some good perks and benefits of having a Joint Home loan. This is how a family works. If you feel you are not eligible or stable enough to have a home loan alone, you can apply for a joint home loan. A joint home loan is getting a lot of prominences all over the country with a lot of people opting for it. If you need a home loan, home renovation loan , or house repair loan with your partner, you need to know what it is and why it can be a good option for you. What is a joint home loan? A joint home loan is when there are two borrowers for one particular loan. A home loan is a high-value loan so to avoid risk, there can be two borrowers for one particular loan. A joint home loan is one where you can take your partner along for borrowing. This is an ideal option if you are not having good credit eligibility or high income ,...
Read more

Top 10 Home Loan Tips

Image
  A home brings in a new lifestyle and new beginnings. For every Indian, home is an emotion that they can never do without. It is not only a feeling, but a sense of security and brings in social status. However, it is never easy to get home due to the large investment it needs. A home is not a quick buy as it takes a major portion of your income. Today, individuals are looking for their own homes because of the availability of a home loan. A  home loan  has turned dreams into reality.  However, home loan is a huge burden, as it is a costly and long-term commitment. It takes up a good share of your monthly income, and hence, it needs a lot of planning. So, before you dig in and fill up the application, you should go through these tips that can help –   Start saving money for the down payment. A home loan may sponsor 80-90% of your property amount, but you need to arrange the down payment. The down payment will not be a small amount, so if ...
Read more

DIFFERENCE BETWEEN HOME LOAN AND HOME TOP-UP LOAN

Image
‘Home loans’ and ‘home top-up loans’ are very popular terms. Well, the purpose and meaning of both are very different. If you are a homeowner you probably know it well. For people new to borrowing, you need to have a good idea about the difference between a home loan and a home top-up loan. Once you are aware of the differences, it becomes easy to choose and process them. Therefore, let us discuss the differences between both and understand what they actually mean. It helps with an informed decision especially for the ones taking a fast home loan in the future. What is a home loan? A home loan is a rigid purpose loan that is taken to purchase a home and nothing else. It is a secured form of loan that can be recovered from the property itself if the homeowner defaults. The rate of interest and charges are low if one meets the eligibility and gets proper research done in order to find the right loan provider. Home loan eligibility and documentation is a strict one due to the amount...
Read more