Things you can do to increase your Home Loan eligibility

Things you can do to increase your Home Loan eligibility

We, as citizens of India, know how far our country has come in terms of economic revolution. When most of the countries in the world were facing problem due to the recession, India was one of those countries who were out of this zone. This is the reason our economy has been called as Elephant Economy. Owning a house is one of the trends that people are following since we have got Independence. Those who are already having huge bungalows and flats are free from these worries. But there are many of us who are unable to pay a lump sum amount to buy a house. In such a case, banks and other financial institutions are ready to help you by providing Home Loans.

Home Loans have become the most common need for almost every working individual. Keeping this in mind, banks and other financial institutions had launched the Home Loan facility. Lenders have made availing Home Loans very easy and convenient. You just need to know whether you are eligible for it or not. The eligibility criteria that lenders set is something we need to look at if you are going to avail a Home Loan. For passing a Home Loan eligibility criteria, lenders will need information about your current assets and liabilities, income, etc. However, if you think that the financial institutions might not consider you to be eligible for a Home Loan, here are some things that you can do, to increase your eligibility:

  1. Clear your existing loans: It is important that you clear all your previous debts beforehand. If you go to a lender with a lot of debt, then they will definitely reject it. So, it is better if you clear all your previous debts first and then ask for another one.
  2. Variable Pay: Keep this always in the record that how much variable perks or payments you are earning in your present job. With the help of this record, you will be able to pass the housing loan eligibility criteria quickly as the lenders will get assured with repayments of the Home Loan.
  3. Rental Income: If you have another house in the same city or in any other city, lease it out as soon as possible. The earnings you will get from the rentals will be helpful in paying your Home Loan instalments and the lenders will also be satisfied with the repayment options you have.
  4. Increase Tenor: If you increase your Home Loan tenor, then the possibility of passing your housing loan eligibility will also increase. Keep it in mind that the tenor shouldn’t increase beyond 25 years.
  5. Spouse Earnings: It is a good idea to take a joint application while applying for a Home Loan. As the lenders will take it as a surety of repaying the EMIs without any gaps and the responsibility will be on both the borrowers equally.
  6. Do your research properly: Before going to avail a Home Loan, it is your responsibility that you should search what services all lenders are offering to their customers, and which one is best for you. Try to bring a clear CIBIL score instead of a negative one. Even if it is showing errors, ask the providers to give a new one by solving the issues related to your CIBIL score.
  7. Consider step up Loans: This one is suitable for those who are not in a condition to pay EMIs with a big amount. Many lenders give you the option of step up loan, where you can pay low EMIs in the initial years then, after a few years, when you will be able to pay full EMIs, can balance the debt.

Before availing a Home Loan, make sure that you have passed all of the above points and are ready for the housing loan eligibility test to get clear.

 

Category Finance

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