Every financial lender has a process to assess the candidate’s eligibility for a home loan. The applicant’s profile, which includes income, job type, loan ranking, and more, play a crucial factor in determining the eligibility. By following these tips, you can increase your eligibility and apply for home loan at the best interest rates.
- Choose a joint loan
Applying for a joint home loan is one of the most straightforward ways to boost your eligibility. Most lenders feel more secure offering a joint loan because of the joint income. So if you apply for the loan with a spouse or family member who is willing to provide the necessary documents, the loan has better chances of being approved.
- Long-term loan option
You can choose to boost your eligibility for the home loan if you choose a more extended repayment period. This will lead to a lower EMI value but the tradeoff is the higher interest rate. The application may be viewed more favourably by the lender if so which naturally increases the eligibility for the home loan. You can always check the EMI value in the home loan calculator.
- Repay all the old loans
If all the previous loans are completed, then it will help enhance the chances of getting the loan approved. When you apply for the loan, make sure that you do not have any loans or debts. Most importantly, pay off your credit card debt before you initiate the loan application process.
- Work to boost your credit ratings
When deciding your eligibility criteria, all lenders consider your credit rating and require you to enter your credit results. On an average, you need a CIBIL score of 750+ to be considered for the loan. Your loan application might get rejected if your credit score is less than 750. By paying off all previous debts, you can boost your credit ratings.
A Home Loan calculator is an online service that allows you to estimate the cumulative balance of your monthly credit instalment quickly. You input your loan number, your offered interest rate, and your loan tenure. When you press the “Calculate” button, the results from the home loan eligibility calculator would be 100 percent correct.
- Submit your variable incomes
Another way to increase your eligibility for the home loan is to include documentation of your variable income along with your salary records. Many businesses provide their employees with monthly benefits and yearly bonuses, which will significantly boost their annual salaries.
- Include more sources of income
If you have more than one source of income, you can always submit the documents related to it while applying for the loan. This can increase your eligibility for the home loan. You may provide income from sources such as dividends from stocks, mutual funds, or even passive income.
Check your eligibility in the home loan eligibility calculator available online. Other factors that affect the eligibility of a home loan are age, occupation, etc. The above tips will help you expand your qualifications for a loan so you should remember them before starting the loan application process.