Follow These Steps To Increase Your Home Loan Eligibility

A home loan is a handy credit form that aids a borrower in fulfilling the dream of owning a residence. This loan variant further offers substantial credit against an affordable interest rate.

However, applicants have to fulfill specific home loan eligibility criteria for hassle-free processing.

Here are some tips to increase one’s eligibility for quick housing loan approval.

Ways to increase one’s home loan eligibility

• Joint application

Applicants can enhance their home loan eligibility by opting for it with a co-borrower. Typically, applying with a co-applicant with a good credit score increases the chances of receiving a maximum fund against suitable EMI. Borrowers can use a home loan EMI calculator to determine the monthly installment beforehand.

• Maintaining a 750+ CIBIL score

Lenders again give preference to applicants maintaining a 750+ credit score and reliable repayment history. A good credit score provides the borrower with a chance to negotiate regarding an affordable interest rate. Individuals should practice timely repayment and clear outstanding debts to increase creditworthiness.

• Income stability

Borrowers with a stable income flow have higher chances of home loan approval. Financial institutions approve the loan application of employed borrowers due to the repayment credibility. Additionally, individuals maintaining a business vintage of more than five years and lucrative business growth have higher loan approval chances.

• Opting for a longer tenor

Going for a longer repayment tenor increases housing loan eligibility. This is possible since EMI outgo reduces and the lowered installment amount is easier to service. Also, it minimises the risk factor from a lender’s end. Still, keep in mind that increasing tenor can lead to higher total interest cost for such credit.

Comparing different lenders offering attractive current home loan interest rates is an ideal solution in this regard.

Following these pointers can help potential borrowers to enhance his/her loan eligibility. However, focusing on these parameters are not sufficient for housing credit approval. Borrowers must keep the home loan documents handy. This would streamline the loan application process and speed up approval.

A home loan is a versatile credit option for first-time residence buyers. Hence, they must research well about the home loan eligibility criteria prior to making an application.