If you are looking to purchase a large house, which costs much more than what the lenders might give you as loan, and then you need to take actions to increase your home loan eligibility.

One common practice is to include your spouse as co-applicant and show higher total income – which in turn can help increase the eligibility.
But there are other options too to help you increase the eligibility. We discuss some of the important ones here:

Reduce your other Loans – For any lender, your ability to service future EMI depends on income as well as expenses. And other loan EMIs is expenses that reduce the money available to service home loan EMI. So it’s best to first reduce or finish all other loans before you apply for home loan.

Credit Score of Spouse – If you are planning to bring in your spouse as co-borrower, then remember that their credit score will also be checked. So you should take steps to improve your spouse’s credit score. This will not happen overnight and hence, you need to reduce your spouse’s borrowings, credit card usage and ensure that all existing EMIs are paid on time. This will slowly improve the credit score of your spouse that will be a big plus when applying for home loan.

Choose your home loan provider in advance – If a person has an existing relation with the lender, then it can help in home loan processing. Therefore, if you are planning a Home Loan in next one or two years, you should start building your relationship with the lender (or bank) in advance.

Job Stability – If you are planning to buy a property in near future, it makes sense to work with current employer continuously for atleast 2 years. Frequent job changes are a negative during credit assessment process and reduce your home loan eligibility amount.