5 Factors To Determine Your Home Loan Eligibilityby Shruti Sharma Content Curator
When you are looking forward to buying a house, you witness the obvious financial upheaval in your life. A lot of homebuyers go through this experience. The introduction of home loans has, however, unloaded the shoulders of homebuyers, facilitating them to buy their dream house, be it a 2 BHK flat in Thane West or 1 BHK studio apartment in Mumbai, without having to go through the financial cataclysm.
Various banks and financing companies offer home loans to buyers. Generally, the credit history as well as the credit score of the homebuyer is taken into account while lending him the loan. However, these are not the only factors which determine your home loan eligibility. These factors are discussed below:
One of the most important factors that determine your home loan eligibility is your income. A significant portion of your income is kept for servicing your home loan. One of the misconceptions people have in their minds is the static nature of the amount of their incomes that is supposed to service their loans. As income increases, the home loan servicing amount also increases.
· Home Loan Tenure
Another important criterion that decides your home loan eligibility is the time period you are taking a loan for. If you are opting for a longer home loan tenure, your eligibility also shoots up. Experts strongly recommend longer home loan tenure periods as there is no chance of pre-payment penalty.
· Debt Obligations
When you will apply for a home loan, your lender will thoroughly check the status of your unpaid debts. Moreover, they are also deeply interested in your repayment pattern. For instance, if you have not been regular with your EMI payments, per se, it may greatly affect your home loan eligibility. That’s why it’s imperative to be regular with your payments, so you don’t face any problem while procuring a home loan.
Your age is also one of the important factors determining your eligibility for a home loan. Your lender is interested in knowing about the amount of time you are left with as a working professional. If you are applying for the home loan at the starting of your career, you have better chances of getting it.
So whether you are taking a home loan for buying a 2 BHK flat for sale in Thane, Ghodbunder road or a 3 BHK flat in Mumbai, it is important to get acquainted with the aforementioned factors that determine your eligibility for a home loan.
Created on Nov 28th 2019 02:56. Viewed 348 times.