The quick mantras to win a home loan application

Taking a suitable home loan could seem a tussle task, as it involves so many facets like finding low-interest rates, low processing fee, a lot of documentation, right loan deal, good and reputed bank or finance company, and of course the application process and so on. Obviously, a little low on interest rates will definitely help you save thousands of bucks in the long run. The easy repayment options offered will help you build confidence and trust in banks and NBFCs. A waiver in pre or post-closure will give a sigh of relief. There are many factors to consider while taking home loans. Some parameters that will decide loan amount are important to access before you apply for it. Follow the given mantras and make a winning home loan application:

Check the eligibility criteria – Before you sail in the ship, you should also be aware of the prevailing conditions. It is, therefore, necessary to check the eligibility criteria on various home loans product offered by banks and NBFCs.  You can use home loan eligibility calculator and do the math on the housing finance. With a few clicks on your laptops or smartphones, you can get a fair idea about your affordable loan amount, tenure, EMI, etc.  After calculation, check the documentation required for the lender. There are lots of housing finance companies that facilitate easy housing finance even at low income and with unstructured income documents. If you meet these conditions, visit the website, fill-up the application form, attach a scanned copy of necessary documents and wait for a couple of days for approval by the bank or finance companies.

Know credit Score – One of the most mistakes that applicants make is that they apply for a loan without checking their credit score. To get your loan application approve, you need to have a good credit score.  Whether you shop or take any loan, RBI monitors each and every translation done by you and it’s your responsibility to repay it back. If you repay the money on time you will maintain your credit score well. Spend few minutes to know your credit score. If you score is > 700 you easy derive home loans. But it’s between < 700 then you may face a little hurdle in the loan process.

Job Stability – Experts’ advice whenever you’re planning to buy a home, stick to your job at least 2 to 3 years around before making the application. It’s because banks or NBFCs will scrutinize your job stability, you can payment capability, and credit score and only then go for loan approval. The company you work whether listed or not matters a lot. It will help you fetch more loan amount. If you switch your job, the lenders have to reevaluate your employment and income source. It can cause a delay in your home loan process. Lenders generally prefer to lend money to those applicants who have stable job employment history.

Co – Applicant – A co-applicant like your spouse or parents will enhance your home loan eligibility. When you apply on a co-applicant basis, it will diversify your risk and also guarantees bank or NFBCs of regular and more payment source for loan repayment. Thus, you have higher chances of getting your loan application approved.

Down Payment – Most people are not aware that bank or finance companies will not cater 100% finance on housing needs. You will have to arrange the margin money cost of 10 to 20% as a down payment towards your home loans. Ensure to keep this amount handy along with some extra to combat against recession, job loss, etc. else your application may tend to get rejected or delayed.

Avoid new debt – Although, you have a good salary, credit cards, co-applicants income source it doesn’t mean you keep splurging money on and off. If you’re tied up with too many running loans, the lenders might turn down your house loan application. Therefore, avoid new debts before applying for your housing finance.