Taking ahome loan makes it financially comfortable for the person buy his own house, when an individual applies for a home loan, the lenders first ensures that the person is prepared to meet the long term financial commitment before the loan is sanctioned.
Here are the 5 factors that affect your home loan eligibility:
Age of the customer:
The chances of getting an approval for the home loan application are higher if the person is younger in age. The younger the individual and the farther he is from the retirement the better the lending institutions feel about granting a home loan to an individual.
Income and the profession are also considered:
Lenders are typically worried about those applicants who aren’t working in the traditional industry. This is because repaying ability of the people who are from a different industry is questionable due to the strong factor of uncertainty that those unconventional industries have attached to it with regards to the security and the safety. Also if the person has changed on a lot of job it will reflect negatively on the ability to hold on a job. Also a steady source of income will improve the home loan eligibility. The person can also qualify for a higher loan amount if he has held onto the same job for years. Most of the banking and the non-banking financial institutions offer home loan eligibility calculators online which take into consideration the monthly income of the person to determine his housing loan eligibility.
Age of the property:
Avoid choosing a property which is old, if the property you are considering to buy is very old then the lending institution will carry out independent evaluation from their side. Depending on their results, the home loan eligibility will be determined. The lenders may also consider the existing properties or assets that person may possess. If the person is eligible for the loan against property it will improve your home loan eligibility too.
Credit score of the potential customer:
Before approving the home loans, the lending institutions asses the credit behavior from the credit history or the cibil scores to check your reliability as a borrower. The cibil score of the person should be greater than 750 for good home loan eligibility. Base credit score reduces the chances of availing for a housing loan. If the person has outstanding credit record on the preexisting or the past loans, the chances of getting a home loan gets better.
Number of the dependents:
Lenders also consider the number of dependents, such as the parents retired or working, children or the spouse you have. The repayment capacity and home loan eligibility measure if the person has more dependents.
Lenders will also consider the number of dependents (such as retired parents, children, or spouse) you have. The repayment capacity and home loan eligibility are judged if you have more dependents
It is always better to compare the various home loans offered by the various banks and the financial institution as it will be better to avail for a home loan after the intensive study on it. This will help him to avail for a loan which has flexibility in the interest rate and the mode of repayment.