Do you know how to increase housing loan eligibility?

Checking eligibility for home loans before applying enhances homebuyers’ borrowing experience. It also helps potential buyers to increase their chances of loan approval. Therefore, borrowers must follow certain tips to improve their housing loan eligibility.

Here is how individuals can increase their eligibility for home loans.

1. Apply with a co-applicant: Applying for home loans with a co-borrower boosts the eligibility. This enables them to secure a substantial loan amount with additional tax benefits.

2. Choose a longer loan tenor: Choosing a longer loan repayment tenor increases borrowers’ eligibility by reducing the chances of defaulting. A longer tenor reduces the monthly instalments. Moreover, individuals using a home loan EMI calculator in India can evaluate their EMI outgo and choose a tenor accordingly.

3. Paying off existing debts: Repaying existing loans reduces borrowers’ EMI burden and increases their eligibility for a housing loan in India. Therefore, timely payment of dues and existing debts enhances the eligibility.

4. Consider all sources of income: Lenders check an applicant’s income capacity and credit profile before granting a home loan. Therefore, while submitting documents, they must include all sources of income to increase their eligibility.

5. Improve credit score: One must take necessary measures to improve his/her credit score and enhancing the overall credit profile.

Another way to improve housing loan eligibility is by choosing a property from a reputed builder.

These are the ways new borrowers can improve home loan eligibility that ensures better interest rates. However, existing borrowers can also reduce interest burden by opting for a home loan balance transfer.

Therefore, upon improving the eligibility on home loans, an individual can receive a higher loan amount at a lower home loan interest rate, regardless of the loan amount.