Few pointers to easy home loan approval
Your home is a big ticket purchase and one of the biggest financial decisions that you make in your life. There are a lot of things running into your mind such as the property authentication, location, safety, travel convenience, better access to amenities like schools, malls, colleges, and most importantly how to fund it. Thanks to leading private lenders, government and private banks funding your home are quite easy and you can avail home loans at attractive interest rates of around 8.50% - 9% with longer tenure and flexible repayment options. However, the competition is quite stiff and many times borrower look perplexed on how to get the home loan approved with less hassles and quick turnaround time. So here are a few tips that will help you get a home loan approved without any problem:
Find a home within your budget
When you look for a property, banks will check your liabilities, your income source, and asset. After this, the income would be stacked against your EMI. Lenders will see if you will be able to pay the EMIs regularly on the loan amount you eyeing on. So, choose a house within your budget and ensure you divert around 40-45% of the monthly funds towards home loan EMI payments.
Choose RERA authorized property
The property you choose to buy would yield higher loan limits and better interest rates if it's a RERA authorized with property documentation and builder authentication. Secondly, it would be great if its anticipated value is higher in the forthcoming years. When you take a home loan, you keep property papers as security to the lender. So, they will make sure if they can recover the value in case you default. Thus, lenders will investigate construction, builder reputation, papers, permissions, etc. and then would approve your loan amount. Your loan application is more likely to be approved if the project has adhered to all state and central laws & regulations diligently.
Good Credit Score
An excellent credit score of around 750+ will help you get easy home loan approval. When you wish to apply for home loan, the first thing they would assess would be your credit score. It’s your history of repayment towards your debt that you have been taking so far. The score ranges from 300-900 points. And when you repay on time you score reaches near 900. It means you're a responsible citizen and you are capable of repaying the debt on time.
Steady income source
Your Income source will help you decide your home loan eligibility. Lenders want to ensure that after clearing all your existing debts you're in a comfortable position to repay the home loan EMI. An additional income source like spouse/parents earning will help you get higher loan limits. It's important to have a stable job for around 1-2 years before you apply for a home loan. Your regular ITR filing and bank account statements will talk on your behalf to the lenders that will display your steady income source. A well-known company especially being listed, better job position and future growth prospect will help you yield higher loan limits.
Margin Money
Any lender will sanction 80-85% of your property value and remaining costs of around 15-20% has to be paid by borrowers. Lenders will check if you're ready with this amount will applying for Apnapaisa home loan. Ideally, the more down payment you make lesser you have to borrow and less would be your interest rate.
Find a co-applicant
If you have co-applicant like your spouse, parents, your ability to repay the money will increase. It automatically places trust in the minds of lenders for comfortable loan repayments. Thus, they will consider your home loan application and will be ready to negotiate on the interest rates as well.
Keep these factors in mind; apply for hassle-free home loan approval online!
