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Owning a house is an ambition we all possess. Gone are the days when people waited till retirement to get lump-sum money with which they could buy a house. Millennial’s today believe in instant gratification, so if they want a house now, they will buy it today instead of waiting for the uncertain future.
Wonder where do they get so much money from? Unless you already have a stash saved somewhere you are home free. For those who have not, the answer is simple, home loans.
With a gamut of housing finance options offered by leading banks and financial institutions, there is no dearth of places from where you can get home loans. Lenders these days are more than eager to help you buy a house by providing you with home loans with easy home loan EMI options that are within the reach of affordability.
Additional Read: Planning to buy a home? Make sure to follow this Home Buying Guide
In some rare cases though sometimes, a home loan does end up getting rejected. The reasons are many, right from incorrect information in home loan application form to having a bad CIBIL score. If you are sure of availing a housing loan, there are ways to make sure that you do not get rejected.
Let us look at five ways by which you can actually boost your home loan eligibility:
Clear all your existing loans:
You might have taken personal loans in the past, or your credit card may be constantly showing an outstanding balance. The first thing that you need to enhance your home loan eligibility is clear all existing loans. Immediately close these accounts, collect the loan closure certificate, and make sure it is updated in your CIBIL credit score.
Additional Read: What are the basic Eligibility conditions & Documents required for a Home loan?
Spouse’s income:
If your spouse is also an earning member, then it is a great idea to go for a joint application for a home loan. Joint applications instantly increase the home loan eligibility. This also implies that the liability of repaying the home loan is left to both so if one person fails, at least another person will repay the home loan.
House rent:
In case you have a house in your hometown that is lying idle, it is a great source to boost your housing finance eligibility. You can lease it out, and show that the rental income that you earn from this house is an additional source of income for you. This will certainly boost your home loan eligibility.
Variable pay:
As part of or over and above your salary component, you might be earning a lot of perks, or there could be some variable pay options. You must keep a record of all these perks that you earn as part of your job and provide it to lenders, so that while calculating your eligibility they consider these additional incomes, too.
Longer tenure:
Not many people know that when you increase your home loan tenure, there is a possibility that your eligibility will also be increased. However, note that financial institutions such as Tata Capital do not increase it beyond 30 years.
Additional Read: Top Factors Affecting your Home Loan Tenure Decision
Every financial institution including Tata Capital has their own eligibility criteria. Before you avail a home loan, make sure you read up on those to know where you fit in. If everything seems good to go, then figure out how the above aspects can help you gain a better chance of availing a housing loan.
Housing finance institutions, these days, are more than eager to give housing loans to individuals with a good track record. Make sure you have a clean loan repayment history so that you can turn out to be a trusted borrower in their eyes in order to boost your home loan eligibility. By abiding by the above guidelines, we bet you can easily get a home loan, and buy the dream house of your choice.
