Home loans will help you fund your dream property in any part of India. Today, there are leading banks and finance companies out there who offer customized loan solutions to the borrowers. You can avail loan for buying a new or resale property, home renovation or extension, for construction, etc. Lenders are willing to offer home loans with interest rates as low as 8.90 to 10% with flexible repayment options. You can choose affordable EMI options for around 20-25 years and clear the loan amount with ease. When you apply for a home loan, lenders first evaluate if you’re in a strong income position so that you’re prepared to meet the long-term financial commitments before they go ahead with the loan sanction. Here are these factors:
Lenders will be keen to understand your source of income and its stability. They would wary of those borrowers who aren’t working in MNCs, government firms. It’s because the repayment capacity of such applicants would be questionable as they could be a strong element of uncertainty regarding their jobs especially BPOs, real estate agents, etc. So, it’s important you have strong income source and stability. You should be working for around 2-3 years in the same profession before you apply for home loans online.
If you’ve hopped a lot on your job, it will reflect a negative impact on your ability to generate steady income. Being steady in your job will help you qualify for a higher home loan amount if you’ve held the same job for a couple of years for instance around 2-3 years. Most of the online home loan eligibility calculators will ask you key in these details like job type, company name, stability, take-home salary, etc. to determine your home loan eligibility.
Your age can play a miraculous role in approving your home loan application. The young you are and far away from your retirement, the better are your chances of getting a home loan approved quickly and with low-interest rate deals. Lenders usually consider the candidate who would clear the debt before the retiring age. So if you’re somewhere between the late 20s to early 30s they would welcome your loan application and willing to offer customized loan solutions.
The property location, value & its age
The property location and its anticipated value along with the age will play important role in deciding the loan amount. Lenders will be happy to offer loans for property which has an anticipated higher value. In fact, you can avail a top-up on your home loan as well in near future to fulfill your financial goals. And they will offer you a lucrative interest rate deals for new home loans or ones which are recently being re-sold in the real estate market. Depending on the results, your loan eligibility will be determined.
Before your home loan is approved, lenders assess your creditworthiness through credit history being generated by CIBIL score. It shows if you make timely repayments of your debts. Ideally, a CIBIL score of 750+ is considered good enough to negotiate with the lenders for low-interest rate deal and higher loan limits. If you’ve defaulted on credit before, chances are your application might be rejected.
Number of Dependants
The dependents will have a direct impact on your monthly income. Because it will reduce your repayment capacity and you would qualify for low home loan limits. Therefore, lenders will consider the number of dependents such as retired parents, children, sibling, spouse before they would sanction a particular loan amount for you.