You and your spouse are living in a home that comfortably accommodates the two of you. However, you often wonder what you will do once you plan to grow your family? Or if your parents or in-laws decide to move in with you? As your family grows, so should the space in your home for comfortable living.
And so, many people prefer to take home extension loansto finance their decision. It is convenient, easy to avail, and has flexible eligibility criteria. So, if you are planning to apply for a loan, you can follow these simple steps to ensure instant approval.
1. Know the loan terms
To get the best loan terms, shop around and compare various lenders. Once you have chosen your lender, you must be fully aware of the loan terms and conditions offered by them. Go through the loan offer documents thoroughly and understand the home extension loan interest rates, loan processing time, repayment tenure, flexible EMI, and so on.
Additional Read – Home Loan Approval: How to Get a Home Loan Approved Instantly
2. Understand the eligibility criteria
Several banks offer attractive loans for a home extension where you can apply individually or jointly with the co-owners. Since the approved loan amount depends on several factors, including your income, age of property, repayment history, etc., you must go through the specific eligibility criteria of the lender. Moreover, if you already have a home loan, you can get a housing extension loan as an additional service from the lender.
3. Maintain your credit score
Your credit score, ranging from 300-900, is a critical factor affecting your home loan eligibility. A high CIBIL score reflects diligent repayment behaviour. Then, if you have a score of 750 or above, the lender may offer you the desired loan deal at competitive rates.
4. Prepare your documents
Before moving forward, check the documentation required by the specific lender for a hassle-free application process. Depending upon the lender, you will be required to submit paperwork, including proof of identity, proof of residence, income proof, property documents, a copy of the approved plans by the local authority, and more.
5. Apply with a co-applicant
To improve your chances of loan approval, you can consider applying with a co-applicant. A co-applicant is a family member, such as a spouse or a parent, with a stable income and good credit history.
This can help you combine your incomes and fetch better home loan interest rates. Moreover, if your house has more than one owner, all co-owners have to be the co-applicant on the extension loan application.
Additional Read – Home Extension Loan: Home Improvements Made Easy
To ensure a smooth extension loan process, get all the necessary information beforehand. And if you are looking for an affordable loan to expand your home, turn to India’s reliable lending institution- Tata Capital!
With us, you can avail of a quick housing loan through a simple online application process. We offer you easy repayment options with maximum eligibility and ensure swift loan disbursal.
So, don’t wait up! Use our online home loan EMI calculator today to get an estimate of your payments. Get in touch with us to know more.