Enhance Your Home Loan Eligibility In Simple Way
Not everyone is eligible to become a borrower for a home loan and claim tax benefits. With the rise of homebuyers seeking to purchase their own home, any homebuyer wants the home loan process to get through as soon as possible to ensure that their choice of home is not sold out till the formalities are completed. Along with personal credibility, bankable asset, and income plays an important role in loan eligibility, if there is a co-borrower the approval procedure gets a boost.
Life offers you many comforts. One such comfort is having a home that lends you comfort and happiness. However, A dream home can be closer to reality if you want financial discipline in your life. The home buying process involves a lot of processes. Taking a home loan is one such important process. Home loans, after the liberalization of the economy, has become a usual norm to own a house. In addition to the same, with the rise in demand for home loans, being eligible to buy your own home is a matter of question.
Clear your existing loan:
If there is any existing loan under your name, try to re-pay it before applying for a fresh home loan. Non-repayment of the loan may lead to a reduction in the amount of home loan by the lender. The lender may think that the borrower is already burdened with the EMI of an existing loan and may end up in delayed or non-payment of EMIs for a home loan. In such a case, the lender can even deny for a home loan.
Opt for longer repayment tenure:
When there is an increase in loan tenure, there is a rise in your home loan eligibility. The lender will have a notion that you have a lot more time to re-pay the loan so, the possibility of on-time repayment of the loan increases. Because of the longer tenure of the loan, as a borrower, you also have the benefit of timely payment of the loan.
Improve your credit score:
CIBIL score or credit score plays a crucial role in deciding your loan approval and loan amount. It helps the lender decide upon the home loan eligibility. As per CICIL (Credit Information Bureau (India) Limited), 79% of loans are approved if an individual has a credit score greater than 750. Good CIBIL score leads to low home loan interest offered.
Taking joint loans:
One of the most widely used methods to increase home loan eligibility is applying jointly with a spouse or a co-applicant. This substantially increases home loan eligibility with added benefits.
Few other factors that helps in your home loan eligibility:
- Good repayment history
- Stable financial past
- No loans due
- Regular rental income
- A co-applicant
- A credit score above 750
Apart from the ways discussed above, there is a lot more way to increase your eligibility on a home loan. With the eligibility of a home loan owning a home has become closer to reality for home buyers.
Pacifica Companies offer a wide variety of residential projects around different cities like Ahmedabad, Vadodara, Chennai, and Hyderabad.