Buying your dream home is one of the proudest moments of your life. When you purchase your dream project, it requires a lot of research, planning that will meet the necessities of your family, job location, locality, and other facts. For many individuals, it is not possible to buy their home on their own, and therefore they look for funding options. Home loans in India provided by government banks and private finance companies are the best bet in today’s time. Banks and private finance companies cater to clients with customized housing loan plans at competitive interest rates and flexible repayment options. You can either opt for a fixed or floating rate as per your risk potential.
With aggregator sites, you can compare quotes of top banks and financial institutes, and choose the cheapest home loan deal. Right from the cozy corners of your rental homes or offices, you can compare interest rates, processing fee, loan disbursal value, time, monthly EMIs and other charges.
Once you submit your application online, lenders would do a few background checks of the borrower before they proceed for housing loan sanction:
So, here are few things to consider before you submit an application:
When an individual works in the same organization for 2-3 years, it proves his or her stability, job security and regular flow of income. Thus, your home loan is likely to get approved. So, it is advisable to maintain consistency in your job. If you’re planning to apply for a home loan, wait till your loan gets approved.
Your credit score
Your credit score is a three-digit number being assigned by rating agencies like CIBIL, Equifax, etc. It depicts your creditworthiness and repayment history. Housing loan lenders would expect a credit score of 750+ for quick loan sanction. So, if you want to apply for a loan, make sure you clear your prior debt and maintain a healthy score at least for six months. It will help you crack the cheapest home loan interest rate deals.
It will be considered by lenders while applying for home loans in India. Loan providers will check what your income source is, and how much financial obligation to you have? If you have a higher debt-to-income ratio, it means it would be difficult for you to repay the monthly installments. Thus, your chances of rejection would be higher. So, it’s important to maintain a low debt to income ratio. It is more likely to get easy loan sanction.
When you apply for home loans, lenders won’t sanction 100% loan amount. They will fund 80% to 85% of your property value. The remaining amount has to be managed by the borrower itself. So, you should make sure you have to save at least 15% to 20%, and a little extra for tough times like recession, job loss, etc. It shows you well preparedness towards your housing loan, and you’ll have more probable chances for loan approval.