Five tips that will help you boost your home loan eligibility

by Litty Jose Finance Analyst

Home loan eligibility is a topic that brings a lot of stress to a lot of people. Home loan eligibility criteria is very strict. You can only get a home loan if you pass a series of criteria and this is something that scares a lot of people. But getting home loans isn’t as difficult as it is made out to be, if you have your documents and your finances sorted, there is nothing that can stand in your way.

But there are lot of things that can go wrong when you apply for house loans too. Every application you make for your housing loan, has an effect on your credit score, which is perhaps the most important factor when you’re seeking a housing loan.

There some ways in which you can boost your housing loan eligibility, read on to know what they are.

1. Start with a clean state: This means clearing any pending loans or debt that you may have. As mentioned before, home loan eligibility is most reliant on your credit or CIBIL score. It plays a crucial rate in not just getting you the loan but also in getting you a good home loan interest rate. One should ideally clear all pending loan, be it a personal loan, car loan or even credit card bills. This will help your home loan application much smoother.

2. Get a home loan eligibility calculator: A home loan eligibility calculator with help you understand whether or not you’re eligible to get a home loan, if you’re not why and what you can do to help make your chances better. If you are then you can also find out the rate at with you are eligible to get the loan and what you can do to lower that rate.

3. Keep track of all earnings: Keep a track of all the bonuses and any other variable income that you make be getting. You can also count any rent you receive from your property or income from any side businesses. This will come in handy when you have to show your lender that you can capable of paying back their home loan.

4. Take your spouse’s income into account: Applying for joint loan with your spouse or partner can boost your home loan eligibility. When there are two co-signers there is less of a chance of the loan being unpaid, you can also get a lower interest rate when you get a joint loan.

5. Take it slow: Don’t be in a hurry to get a loan and apply to ten different lenders at once. Do proper research before you apply for your loan, check for the best interests rates and miscellaneous perks, if any.