• Contact Us
  • Services
  • Advertise
  • Affiliate Disclosure
No Result
View All Result
  • Login
Bolt Posts
  • Home
  • Business
  • Fashion
  • Health
  • Travel
  • Technology
  • Education
  • Entertainment
  • Home
  • Business
  • Fashion
  • Health
  • Travel
  • Technology
  • Education
  • Entertainment
No Result
View All Result
Bolt Posts
No Result
View All Result
Home Business

Eligibility Preparations You Should Make Before Applying for a Home Loan

Sophia Owen by Sophia Owen
January 25, 2021
in Business
0
Use ubanker Online Financial Services Free
326
SHARES
2.5k
VIEWS
Share on FacebookShare on Twitter

As per a report by Economic Times, the overall demand for home loans in FY 2018 grew by 39% in India, thus establishing an increasing demand for this secured loan. Understandably, it can only be met if the candidates receive easy approval of finances for their property purchase. Subsequently, loan applicants need to meet home loan eligibility criteria to improve their chances of application approval.

When financial institutions extend funds, they assess the borrowers based on specific criteria to establish their financial credibility and repayment capacity. Prospective loan applicants need to ensure that they meet these eligibility criteria for the successful processing of their loan applications. Now, check out the deciding factors for eligibility for a home loan.

Factors that affect home loan eligibility and lender’s criteria:

Age of Loan Applicant

Age is an essential deciding factor of eligibility because lenders evaluate the remaining service years of an individual. As per this, they estimate the tenor for which a borrower will be able to repay a home loan conveniently.

In most cases, the age limit for a salaried individual is 23 to 62 years, whereas it is 25 to 70 years for self-employed individuals. Consequently, lenders prefer extending these advances to individuals the risk of default or non-payment reduces.

Monthly Financial Obligation

Meeting credit card bills, medical expenses, educational expenses, etc. can be significant financial obligations one may have to meet every month. It reduces their repayment capacity. Therefore, financial institutions evaluate the monthly obligations of a candidate to see if they will be able to pay EMIs of housing loans in time.

Credit Score and History

The clean repayment record of a candidate is reflected through a decent credit score of 750 and above. It makes their application more promising, and chances of approval increase. Apart from what is the best credit score for a home loan, learn how to improve your credit score as holding a high score will help you avail substantial credit at competitive rates of interest.

Property Value

Financial corporations will evaluate and assess your property before lending secured finances. If one is availing the loan to construct or purchase a house property, then the estimated cost is calculated by lenders, and the loan amount is approved accordingly.

Some of the reputed lenders can grant up to 80% of the property value as loan amount, also known as the loan to value ratio. Therefore, meet your home loan eligibility criteria and opt for a loan amount that is within 80% of the property value to improve your chances of approval.

Income and Employer Profile

The monthly salary of a candidate is an important determinant that financial institutions consider. A loan is provided to salaried applicants only if they adhere to home loan eligibility criteria for salaried individuals.

In addition to the salary amount, lenders also consider job stability and employer profile when deciding if a candidate should be approved for the loan or not. Candidates can also check whether they are eligible for the loan or not by using the housing loan eligibility calculator available online.

How to improve home loan eligibility?

  • Take initiatives that help improve your credit score.
  • Apply for a joint loan with a family member with a higher income, or having a decent CIBIL score.
  • Specify your additional sources of income, if any.
  • Check your credit report thoroughly for errors and take steps to rectify them.
  • Repay any other loan or debt in time.

Apart from meeting eligibility conditions, one should also ensure that he/she has the essential documents required for a home loan application. Failing to produce these documents can lead to the rejection of the loan application. Better yet, keep those documents handy before applying for a hassle-free procedure.

Tags: home loan eligibility criteriahousing loan eligibility calculator
Previous Post

An Overview of Anti-Aging Creams

Next Post

Everything You Need to Know About Dental Floss

Next Post
Everything You Need to Know About Dental Floss

Everything You Need to Know About Dental Floss

No Result
View All Result

Categories

  • Business (34)
  • CBD Oil (3)
  • COMMUNITY (81)
  • Education (29)
  • Entertainment (45)
  • Fashion (63)
  • Finance (63)
  • Foods (3)
  • Health (51)
  • Home Improvement (39)
  • Lifestyle (19)
  • Music (2)
  • News (3)
  • Sports (4)
  • Technology (173)
  • Travel (28)

Recent.

Top 5 Games To Play On Zoom

Top 5 Games To Play On Zoom

April 21, 2021
Here’s What You Need To Know About Million Little Things | Season 3

Here’s What You Need To Know About Million Little Things | Season 3

April 21, 2021
Few Essential and Auxiliary Perspectives About LED and Plasma Screen

Top 13 Places To Watch Live TV Online

April 21, 2021

Bolt Posts is a one stop destination for finding the most reliable information on business, technology, entertainment, and inventions. This platform is revealing things in an engaging way to improve your knowledge on what is going on across the globe.

Categories

  • Technology
  • Entertainment
  • Fashion
  • Sports

Housekeeping

  • Contact Us
  • Services
  • Advertise
  • Affiliate Disclosure

Recent Posts

  • Top 5 Games To Play On Zoom April 21, 2021
  • Here’s What You Need To Know About Million Little Things | Season 3 April 21, 2021
  • Top 13 Places To Watch Live TV Online April 21, 2021

© 2021 BoltPosts By Marketing 1on1 - All Rights Reserved.

No Result
View All Result
  • Home
  • Business
  • Fashion
  • Health
  • Travel
  • Technology
  • Education
  • Entertainment

© 2021 BoltPosts By Marketing 1on1 - All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In