Smart tips to improve your home loan eligibility and Make loan process hassle-free!

What is more painful, the paperwork process you have to follow to apply for a home loan or getting your application rejected by the loan lender? We guess your answer is the later one and indeed it would be frustrating to experience it. Not everyone has financial capability to buy a new house hence such aspirants opt for a home loan. While most people are reluctant to follow the application process, it is wise to check out what are the home loan eligibility criteria before applying for a housing loan.

While the rate of interest might keep you distracted while comparing various housing loan product, it is the eligibility criteria that matter. After all the approval of your loan application depends on it. And to make sure your application has the potential to meet the home loan eligibility norms, keep following pointers in mind.

One loan at a time!

If you’ve been comparing various home loans option then you are well aware of the fact that EMIs for home loans can be hard to manage. When you opt for a housing loan, the loan lender would consider the installments you are currently paying on other loans. This can influence your home loan eligibility as banks only count only half of your monthly income which can affect your ability to repay the loan amount. This is ideal for you as if you are paying two or more installments in a month, it would be hard to maintain your monthly budgeting.

CIBIL score: the saving grace!

Most housing loan provider loves the aspirants who have the incredible credit score to their title! Loan lenders keep such home loan eligibility as the CIBIL score reflects the potential of paying back loans and debt on the basis of your credit history. Hence when you apply for a home loan, make sure your CIBIL score is apt as per the norms set by loan lender. Needless to say, the chance of your application getting rejected by the loan lender is high if you have a low credit score. You can maintain or improve your CIBIL course by paying your previous loans and their installments on time. An ideal score would be 750+

Declare your all income source!

We hope you have a good CIBIL score and if not you can still improve your home loan eligibility by declaring all source of income. Since most banks assess your eligibility on the basis of fixed source incomes like salary. And if you add other income sources like rentals income and dividend profits, it will add weight to your loan application. Indeed you will be asked to submit documents stating the proof of additional income source to the loan lender.

The benefit to married couple!

If a married couple sees the same dream of owning their own home, why loan eligibility of one person should be considered? Apparently, most of the housing finance lender gives an option to submit a co-applicant to improve the scope of home loan eligibility of your application. Such eligibility criteria are also beneficial from loan lenders point of view as it reflects more assurance on the repayment of the loan amount.

Choose your tenure period right:

The right decision can add an indirect effect on improving home loan eligibility during the process. It would be ideal if you prefer to choose a longer tenure period for repaying the loan amount. It would not only be helpful in managing the EMI but also assures your ability to repay the loan comfortably.

An individual can be efficient in dealing with most problems, but financial emergencies can be a nightmare at times. You might need some urgent funds to manage medical bills, host a wedding ceremony or to manage other expenses as soon as possible