Quickest Way to Find out How Much Home Loan can You Afford?by Anamika Verma Advisor
A Home Loan is one of the most sophisticated loan instruments available in the market today. Because of the quantum of the loan that involves with a Housing Loan, a potential borrower has to go through a lot of Home Loan eligibility to find how much amount he/she can afford and more.
You can also use a Home Loan eligibility calculator available at a leading lender’s website to know about your eligibility free and instantly. It will quickly help you know an amount that you will be allowed to borrow from a lender.
As a Home Loan applicant, you may wish to avail a Housing Loan amount as per your desire which may or may not credit. Yes, that’s where the loan eligibility comes into the picture. Your loan eligibility may help you know how much money you will actually borrow.
Let’s provide you some Home Loan eligibility insights and more.
What is a Home Loan Eligibility?
A Home Loan eligibility is a process performed by your Home Loan lenders to determine if you are eligible for a Home Loan and if you can repay it easily! A borrower’s eligibility gets determined by many factors such as income, age, Credit Score, repayment history and more.
The following section throws further light on crucial Home Loan eligibility factors that determine your eligibility for a housing loan. You can have a look at them and work to improve it to become eligible for a desired loan amount.
Vital Tips to Improve your Home Loan Eligibility
Here are some factors that determine your Home Loan eligibility and tips to improve!
Your income is one of the major Home Loan eligibility factors that’s assessed by lenders while processing your loan application. The concept is simple to understand – the higher your income, better are the chances of getting loan approval and most importantly, an amount of your choice! What’s more, how much you save after fulfilling all your liabilities is also taken into considerations.
Your Credit Score and Repayment History
A borrower’s creditworthiness is also gauged by his/her Credit Score and how has one been able to manage his/her repayment. A healthy Credit Score of around 750+ and more out of 900 is an ideal score. You can increase your CIBIL Score by paying all your existing loan EMIs, credit card outstanding by the due date. Lenders are confident of awarding a Home Loan to a borrower who has a strong repayment history. It denotes that he/she will also repay his/her Home Loan EMIs without issues.
While a senior citizen applying for a Home Loan may not get a wider EMI because the risk of repayment is more as he/she is practically closer to death. However, a young professional who has started his career and is in his/her 20s-30s can get more time to repay. Thus, your age also plays a big role in determining the eligibility.
Tips to Improve Home Loan Eligibility
You can increase your Housing Loan eligibility by following the following tips:
Pay off all your existing debts – A strong repayment history helps to improve your chances of getting the loan.
Get a copy of your Credit – By doing so, you can correct any incorrect entries.
Opt for a longer tenor – Choosing a longer tenor may help you get the desired Home Loan amount even though you may pay higher Home Loan interest rates
The Bottom Line
You are now aware of the House Loan eligibility factors that you can improve and get closer to your House Loan. Also, you can use a Home Loan eligibility calculator to know an amount that you can avail instantly at a leading creditor’s website. Good luck!
Created on May 7th 2018 07:42. Viewed 752 times.