Find out the amount you get qualified to buy your home

Buying home is an important step of your life. At the same time, it needs a planned approach and commitment to repay the loan within a decided time frame. While offering a loan the lender will have to assess your income source and earnings. This is because they have to be assured that you have a stable source of income through business or job and you will be able to repay the loan comfortably. Your home loan eligibility is judged on the basis of your earnings, age, expenses, savings, work profile – job or business, financial capability and repayment history of your prior loan and other dues. But, beyond all this one of them most important factor – repayment history proves to be the critical indicator of your loan servicing discipline. While earnings and financial capability indicate your housing loan eligibility, repayment history will reflect your intent and willingness towards repayment of the loan.

There are several banks and financial institutions in the nation that offer customized financing solution to people.  Many times it happens that a customer who has a clear repayment track record with particular lender might stand out to be a defaulted on loans advanced by another lender. In such a case, the prior bank may not have an idea of customer’s tendency to default.

Given such challenges, leading banks and finance companies have collaborated to share information on the repayment track record of customers with respect to loans and other dues. This information is collected and maintained by credit bureaus (such as CIBIL and Equifax)

A credit score is a numeric indicator of the creditworthiness of a customer. It tells us how likely the customer is to repay the loan on time. A credit score is evaluated on the basis of repayment history, credit utilization level, a level of indebtedness. A higher credit score indicates that the customer is in a good position to repay loan amount and therefore has higher home loan eligibility.

Some benefits of good credit score

Easy loan Approval – With a good credit score, the chances of loan approval are higher and easier. It is because this builds a faith in the lender about your ability and willingness to repay loans. In such cases, you can also expect quick processing of your home loan application 

Good Borrowing Ability – It will definitely enhance your home loan eligibility, thereby enabling you to avail a slightly larger loan amount in case you require it.

Better negotiation power: A healthy credit score also gives you better negotiation power. You can vouch for lower Property Loan Interest Rate and waiver of processing fees and other charges on your housing finance.

Once you feel you’re ready for the loan, make a checklist of all the documents you will require for loan application process. With online service, you can download the relevant form, attach a scanned copy of relevant documents and submit it online. Banks will check all the relevant documents related such as the title of your property, like electricity bills, for residence proof, identity and residency proof like your passport, PAN card, or voter ID card, if you’re employed, they need your bank statements for the past 6 months, last 3 month salary slips and form 16 & IT returns, and if you’re self-employed, they require your financial statements for the past 2 years, passport size photograph of all the applicants / co-applicants, last 6 months' bank statements showing repayment of any ongoing loans, etc. While the minimum age for a person to apply for housing loan is 24 years, the maximum age for an employed person is 60 and a self-employed individual is 65.



Property Loan Interest Rate

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