If you want to buy your dream home, you should look into getting a home loan that meets all of your requirements. The viability of a house loan is determined by factors such as low-interest rates, flexible repayment alternatives, few procedures, and speedy disbursement. It is important that you thoroughly research all aspects of your home loan before deciding on one. Furthermore, before applying for a home loan, you should use an online home loan eligibility calculator to evaluate your home loan eligibility. This will help you decide whether or not to apply for a home loan from that particular lender. The following are some of the most important factors that determine your home loan eligibility:
- Your Credit Score- A healthy credit score for home loan that is 750 and above can directly impact the home loan rates of interest offered to you. Your score takes into consideration factors such as your repayment history, prepayment of home loan, how many existing loans and credit card dues you have, and what kind of debt you have borrowed in the past to determine your home loan eligibility. Thus, a lender can use this number to measure your financial credibility to assess your repayment capacity before approving the loan.
- Your Existing Debt Obligations- Numerous debts and loans are not a problem. However, unpaid dues are always a concern for lenders. Also, lenders pay special attention to your repayment pattern. Missing EMIs regularly, making EMI payments after the due date, and varied unpaid dues are a cause of concern for them. So be disciplined with your credit repayment to get a high amount sanction on flexible terms and a nominal interest rate.
- Your Income- This plays a crucial role in determining whether the borrower will be able to get the loan or not as the income of the borrower helps the bank in assessing whether they will be able to pay back the loan or not.
- Your Employment Status- Your employment status is just as crucial as your income. Working for a multinational corporation and a reputable commercial or public-sector company makes you a more reliable borrower. Similarly, if you are self-employed and have a consistent business income, lenders are more likely to provide you with a loan on favourable conditions than someone who has insecure employment or business.
- Your Age- All of the aforementioned house loan qualifying criteria are taken into account, as well as your age. This is because the lender is concerned with how many years you have left as a salaried or working professional. Availing a home loan decades before retirement, during the early years of your career, allows you to get a quick sanction on a sufficient amount.
- Your Property Details and LTV Ratio- Lenders are also concerned about the property or home for which you are taking out a home loan. This is due to the fact that your home serves as the security for the loan. As a result, if your property is worth more, you will be eligible for a larger loan, and vice versa. So, in order to secure considerable funds, find the correct property with the potential to increase in value. Secondly, lenders consider how much you are paying a down payment and how much you need financing for. If you have funds for a 20% down payment, you are likely to get a home loan easily. If you want more funds, you may not be able to secure enough or may have to pay a higher home loan rate of interest.
Equipped with the knowledge of these factors, check your home loan eligibility. Once you know you qualify for a loan with your chosen lender, you can calculate the affordability of your home loan using the home loan EMI calculator. Indian Companies offering home loans are a solid choice to explore in this regard. They have a low interest rate on home loans, a tenor of up to 30 years, a high-value sanction, and a Home Loan Balance Transfer facility. To qualify, simply meet the easy home loan eligibility criteria, submit the minimal documentation required to process the loan, and await loan approval.