Mortgage-The ability to get a home loan gives you the comfort of homeownership, even if you don’t have sufficient savings.
Your lender must first determine your eligibility for a loan. A lender will evaluate your income, repayment capacity, loan tenure, and credit score to determine whether you qualify for a home loan.
NBFCs offer Doorstep Service, dedicated relationship managers, and both online and offline channels to make home loans convenient and easy.
Enhancing your home loan eligibility with these tips
Here are some tips on how to increase your housing loan eligibility:
1. A credit score of 750 or higher should be maintained
If your credit score is excellent, you have a high chance of qualifying for a good home loan/mortgage amount. Many financial institutions evaluate your creditworthiness based on your credit score. Credit scores are not required for home loans. It is considered good enough to have a credit score of at least 750 in order to qualify for the loan.
Keep your credit score high by paying your loans on time. Your credit score reflects your commitment to repaying your debt. Keeping your credit utilization low is a good idea. Having a good CIBIL score can help you secure a low interest rate on a home loan.
2. Identify a co-applicant
You can apply for a home loan with your family in several ways. As a co-applicant, you can include your spouse or parents.
Besides boosting your home loan eligibility, co-borrowing can also help you share the repayment burden. Having a good co-borrower’s credit score increases your EMI affordability, which in turn increases your eligibility for a home loan.
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3. Sources of additional income declared
The source of your income must be disclosed when applying for a mortgage online. You can determine your eligibility for a loan/mortgage based on this information.
It is important to mention whether you have a part-time business or rental income when applying for a home loan/mortgage. Having a second source of income improves your financial health, which in turn helps you obtain a bigger loan.
Furthermore, increasing your income will increase your eligibility for a mortgage by increasing your fixed obligation to income ratio (FOIR).
4. Stay away from changing jobs
In order to qualify for a home loan / mortgage, you may need to demonstrate that you have worked continuously for a specific organization.
You may therefore be less eligible for a home loan if you change jobs frequently. Prior to applying for a home loan, you can increase your loan eligibility by working for your organization for about two years.
5. Your home loan repayment period can be extended
It is more affordable to qualify for a longer loan tenure because you pay lower EMIs. The lender will look less risky if your EMI is lower. The benefit of a long repayment period is that you are more likely to qualify for a home loan if the repayment period is long. Choosing a home loan with the longest term is the best option. In contrast, the longer your repayment period, the higher your interest rate.
6. Make sure you choose a good lender and establish a good relationship with them
Make sure you research your options, compare their terms and benefits, and pick the right lender when applying for a home loan. Next, you can establish a working relationship with your lender by opening an account. Having a good relationship with your lender increases your chances of getting a loan.
If you follow the instructions above when applying for a home loan, you can qualify even for a higher amount. An excellent credit score increases your chances of getting a lower interest rate on a loan. Choose a longer repayment period if you cannot afford a high EMI on your income.