Have you been dreaming of owning a home of your own? But have the growing expenses always held you back from fulfilling this desire? Well, there’s a way out!
As affordable housing loans are becoming widely available, you can now realise the big picture a lot sooner. Just check home loan eligibilityand apply. Sounds simple, right? But there are a few other factors you need toconsider to ensure a seamless borrowing process.
Most lenders consider age as a vital factor when determining your eligibility for a housing loan. Since it is a long-term financial commitment, they usually calculate your repayment structure directly based on your age and the period you have left as a working individual. This is why younger applicants are often reviewed more favourably than older ones.
2. Income level
Most financial institutions have a minimum income criterion based on your employment nature and profession, which you have to fulfil to be considered for a loan.
Having a steady source of income also matters while applying for a home loan, as lenders want to be sure of your repayment abilities. The higher your income, the higher the loan amount lenders will be willing to offer you. Several lenders also offer additional benefits like a low-interest top-up loan, EMI holiday, repayment flexibility, and more if they consider you a reliable borrower.
Additional Read: Worried about Your Home Loan Eligibility? Here’s How You Can Ace It!
3. Credit score
Before approving the loan, lenders evaluate your credit score to gauge your financial position and repayment capacity.
This is because your credit score accounts for various aspects of your credit profile like repayment history, the type of loans borrowed in the past, any existing loans or credit card dues, and the number of defaults, if any. It also directly affects the home loan interest rateyou’re eligible for.
Consequently, maintaining a good credit score of 750 or above is critical to convince the lenders of your creditworthiness.
4. Employment status
Along with income level, your employment status is equally influential in determining your eligibility. If you’re a salaried employee working in an MNC or a reputed private/public company, lenders will consider you a credible borrower because you have a steady stream of income. Likewise, if you’re self-employed with a stable business income, you can easily get a loan at flexible repayment terms.
To make sure you’re eligible, you can also use a home loan eligibility checker and get a better understanding of the same.
5. Existing debts
Lenders also pay special attention to your current debts and repayment patterns when reviewing your application. While there is nothing unusual about taking multiple loans to meet your goals, it is vital to pay off the EMIs regularly to maintain your credibility.
So make sure to pay your dues on time and introduce financial discipline. After all, a spotless credit profile will increase your chances of loan approval significantly.
Additional Read: How Can a Co-Borrower Increase Your Home Loan Eligibility?
Over to you
Wondering if you’re qualified for ahousing loan?Don’t worry! Tata Capital’s high eligibility housing finance options are just the right choice for you. Connect today to access competitive interest rates, easy repayment options, flexible EMI options, and more. You can also use our home loan eligibility calculator to see if you qualify.
To know more, visit our website today!