How to Get a Home Loan Approved?
I want a home loan of Rs 20 lakh. How can I get my loan approved?
Where should I apply to get my home loan approved?
What is the documentation process?
Most of you need the answers of these questions. Right? Let us guide you to make your life easier and simpler. First and foremost, you need to educate yourself about the aspects that would help you get your home loan approved. Follow the following mantras and you will make a winning home loan application.
1. Check the eligibility criteria – Before sailing your ship in the sea water, know the prevailing climatic conditions. It is necessary to check the eligibility criteria of home loans. Click on home loan eligibility calculator and do the math of home loans. With a few clicks of your mouse, you can have a fair idea about your affordable loan amount, tenure, EMI etc. After calculation, check the documentation requirements of the lender. Go to that company where you meet the eligibility parameters. There are many new home loan schemes that facilitate easy housing finance even at low income and with unstructured income documents. If you meet the eligibility conditions, apply with complete details and proper documents, and you can get your home loan approved with ease.
2. Know the credit score – Generally, a common mistake made by most of the applicants is that they apply without checking their credit score. To get your mortgage application approved, you should have good credit score. Spend few minutes and pull out your credit score. If your credit score is above 700, you make the winning home loan application. However, if your credit score is below 700 or 650, then you may face problems in the home loan process.
3. Applying on co-applicant basis – In case if your credit score is low, you can apply with a co-applicant. When you apply on a co-applicant basis, you diversify the risk between you and your partner. The lender calculates home loan eligibility on the basis of the credit score of both the applicants.
4. Stability in Job – While going through the home buying process, it’s better to stick to your job. Switching the job at this time can delay the home loan process. The approval of your home loan application is dependent on the information provided by you. Once you switch your job, the lender has to reevaluate your employment and income again. This can cause a delay in your home loan process. Home loan lenders generally prefer to lend to those applicants, who have stable job employment history.
5. Avoid new debt – Your debt to income ratio is considered for mortgage processing. If you are tied up with too many running or existing loans, the lender may turn down your home loan application. So, if you have made the home loan application, don’t tie yourself up with new debts.
6. Keep the down payment ready – Generally, 10% to 20% is paid as a down payment for home loans. Ensure to keep the down payment ready with you because if you will be unable to pay the down payment the home loan application may get rejected because of this.
7. Keep the documents ready in the required format – To avoid any hassle, you have to keep “No Objection Certificate (NOC)” and “Title Deeds” ready with you in the prescribed bank format.
These activities would help you finance your dream home. To know how to choose the best purchase plan when buying a house click here.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
