Enhance your loan eligibility in simple way
Not everyone is eligible to become a borrower to a home loan and claim tax benefit. With the rise of homebuyers seeking to purchase their own home, any homebuyer would want the home loan process to get through as soon 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 and important role for 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. A dream home can be closer to reality if you live a financially disciplined life. There are certain process involved in buying a home. Taking a home loan is one such important process. Home loans, after liberalization of economy has become a usual norm to own a house. With the rise in demand for home loans, being eligible to buy your own home is a matter of question.
There are quite a few ways to increase your eligibility on home loan:
Clear your existing loan:
If there is any existing loan under your name, try to pre-pay it before applying for fresh home loan. Non-repayment of loan may lead to reduction in the amount of home loan by the lender. Lender may think that the borrower is already burdened with EMI of an existing loan and may end up in delayed or non-payment of EMIs for home loan. In such case the lender can even deny for 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 lot more time to re-pay loan so, the possibility of on-time repayment of loan increases. Because of longer tenure of loan, as a borrower you also have the benefit of timely payment of loan.
Improve your credit score:
CIBIL score or credit score plays a crucial role in deciding your loan approval and loan amount. 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 spouse or a co-applicant. This substantially increases home loan eligibility with added benefits.
Few other factor that helps in your home loan eligibility:
• Good repayment history
• Stable financial past
• No loans due
• Regular rental income
• A co-applicant
• Credit score above 750
Apart from the ways discussed above there are lot more way to increase your eligibility on home loan. With the eligibility of home loan owning a home has become closer to reality for the home buyers. Thus, by considering these steps shall definitely help you in increasing home loan eligibility and help you in buying home that you desire for.