Finding the best home loan is not an easy task. As it is not all about getting the home loan at lower interest rate but also considering its other important features attached, such as documentation process, processing fee, pre-payment, balance transfer and foreclosure charges. In case you are planning to take a home loan in near future, you should at least once brush-up your home loan related knowledge. People save money for longer durations to take a long-awaited home loan, but due to few unfamiliar factors sometimes their home loan application gets rejected. Just think how dejected they may feel because of the rejection. Therefore, it is always better to check your home loan eligibility well in advance before applying for it.
Applicant’s current net salary also plays an important role in determining his/her home loan eligibility, as well as total loan amount and tenure. Few lenders also take into account the number of dependents in one’s family. Larger the number of dependents, lesser becomes the chances of getting a home loan approved. Let’s discuss some important factors that decide your home loan eligibility.
Many important factors that decide people’s home loan eligibility are their age, financial history, credit score, other financial liabilities etc. Below are these factors, explained in detail for better understanding.
Factors affecting home loan eligibility
Age Criteria – Applicants who are salaried or self-employed between the age group of 21 years to 65 years of age can apply for a home loan.
Income Criteria – Applicants who are salaried and employed for at least two years in the current organization or if self-employed with at least five years are eligible for a home loan. Lenders claim that debt repayments should not exceed 30% of the borrower’s net salary. This confirms that the applicant will be able to pay his/her home loan securely.
CIBIL/Credit Score – An individual’s CIBIL score holds lot of importance in his/her loan acceptance or rejection. Any score above 750 and close to 900 is considered good by the lenders, as it depicts your creditworthiness and increases the chance of getting home loan with more flexibility on interest rates, EMIs, loan amount and tenure. Any default payment records, fraudulent trends will negatively impact on the applicant’s credit score which will eventually result in the home loan application rejection. Low credit score does not mean that the loan will get rejected. However, it surely makes the home loan interest rates higher.
Employer’s Status – Applicant’s credibility depends a lot on the organization he/she works. Employers of high repute and high turnover makes easy for the employee in getting loan, as most of the lenders do consider renowned companies in the loan approvals.
Financial Stability – More often known as financial history of an applicant. Home loan eligibility is often decided on the basis of past financial stability of an applicant. Maintaining good financial records is a good practice. Before applying for a home loan, lenders do check your financial record of the applicant to have a better insight on his/her present and past financial trends.
Long-Term Association with Banks – It is considered well to have long-term association with one particular bank, as long tenure means longer repayment history. Building a long-term repayment history or holding old accounts are always beneficial in getting home loan at lower interest rates.
Before applying for a home loan, you can check your home loan eligibility online via moneyplus.co.in. You can also calculate your Home Loan EMI by simply submitting your loan related details like loan type, loan amount, property city, annual income and mobile number. Within few minutes our expert executive will get in touch as per your desired time to discuss all the best available deals that suits your requirements. With its EMI calculator’s sliders, you can adjust and check the required EMIs as many times, as this online tool is absolutely free to use.
However, home loan providers give first preference to borrowers who intend to buy a bank-approved property. In such scenario, approvals for the loan are often quick and the interest rates may be comparatively lower. The other aspect is the current status of the property, i.e., is the property for resale or under construction. Hence, keeping in mind these measures you can calculate and estimate your home loan eligibility, absolutely free at moneyplus.co.in.
Apply for a home loan through MoneyPlus to get a host of benefits such as lowest interest rate, minimal documentation and quick disbursement.
