Top 4 Tips To Get A Home Loan Easily
For most aspiring homeowners, availing a housing loan is a necessity to meet the cost of buying the home. However, since these loans involve a huge sum, the lenders approve the applications only after a thorough review of the borrowers’ profile. This is done to ensure that the borrowers repay the amount within the specified loan duration.
If you are a first-time borrower, you must be careful about your application; even a simple mistake can lead to rejection of your home loan application. If your application is rejected, it can significantly affect your credit score and raise a red flag to other lenders. To avoid any hiccups, you can consider the following tips and get your loan approved easily.
- Assess your finances
Before approaching any lender, you must review your current financial situation and determine the maximum amount you can afford to borrow. One of the critical aspects of availing a home loan is to repay the EMIs on time throughout the loan tenure. You must assess your future expenses and ensure that you have sufficient financial backup to meet those needs as well as afford to pay the down payment for the home purchase. So, knowing your repayment capacity and applying for the amount that you can afford is crucial to get your loan approved.
- Pay higher down payment
When you apply for a home loan, the lender will provideupto 80% of the property’s value as a loan. The remaining amounthas to be paid from your pocket. This is called down payment. Experts recommend that you must pay more than the minimum amount required. The higher the amount you pay upfront, the lesser the money you borrow. Also, when making a higher down payment, the lender may offer a discount on the interest and treat you as a low-risk borrower.
- Maintain a good credit score
One of the best ways to boost your home loan eligibility and get your loan approved faster is to maintain a good credit score. The lenders use the CIBIL score reflects as one of the important yardsticks to judge your creditworthiness. The score tells the lenders how good you are with repayments, and your capacity to repay. So, before you approach a lender, you must review your credit score and if it is low, take immediate steps to improve it. Clear all your previous dues (if any) and have a clean financial record. A good credit score is a key factor to get your home loan approved without any hiccups.
- Apply for a joint loan
If you can, apply for a joint home loan with your spouse, father or sibling. This not only improves your chances of getting the loan application approved faster but also makes you eligible for a higher amount, especially if the co-applicant earns a decent income. The lenders in India allow you to combine the income of both the applicants and showcase your sound repayment capacity.