Increase the Probability of Home Loan Eligibility with these 5 easy Tips

In this never-ending competitive world, a human is living with endless desires. Out of the extensive list, one of the prominent wishes is to build one’s own house. And, in such a scenario, home loans have appeared out to be nothing but a boon for middle-class Indians.

However, before sanctioning the loan, there are several factors a lender considers. Right from the liabilities to your income, everything is under strict surveillance. So, when it comes to eligibility, here are five tips that you can follow to ensure loan approval without any hindrances.

1. Paying Prior Debts:

Whether it is a small credit card loan or a substantial amount of personal loan, if there is any debt that has to be repaid, you must clear it off before approaching the lenders for home loans. Having prior lingering debts can affect your home loan eligibility to a great extent. So, clear the loans and make sure that the loan closure certificate has been updated in your CIBIL credit score.

2. Extra Income & Bonuses:

In this present employment market, there are several perks that an employee relishes. So, if you are getting a variable pay or extra bonuses along with your income, make sure you keep a record of it and put forth in front of the lender when it comes to assessing your income. You can even show your extra income sources, if any, such as investment interest, money from rental, etc.

3. Credit History:

Another considerable factor by the lenders is your past and present associations with your existing financial institutions. If there were any sort of delays on paying credit card bills or the negligence regarding the EMIs of any other loan, it could have an undesirable impact on your loan appeal. Thus, it is extremely important to keep the credit history up-to-the-mark.

4. Longer Tenure:

Keeping a longer tenure of the home loan may increase the probability of your eligibility. The longer will be the tenure; the lesser will be the amount of your EMI. Thus, in a way, it can help you lessen the burden of expenditure from your shoulders altogether. However, the thing that you must keep in mind is that financial institutes only offer this loan up to 25 years.

5. Your Age:

When it comes to setting up the tenure, age is the aspect that lenders consider the most. The younger you will be, the longer will be the tenure of the loan. In such a scenario, you can even take the loan in the name of your spouse, if he/she is younger than you.

Hi I am Atish Nayar. I am working as freelancing agent.