Most financial institutions set certain home loan eligibility parameters, such as monthly income, credit score, credit history, present age and other financial obligations. Depending on these factors, they assess the creditworthiness of a borrower and sanction or reject the loan amount.
Failing to meet the housing loan eligibility criteria not only leads to rejection but also leaves a negative mark on the applicant’s credit profile. Hence, to ensure a hassle-free loan process in future, individuals must improve their eligibility by following some steps:
Steps to improve home loan eligibility:
- Individuals need to pay all their existing debts that include loan EMIs, credit card bills, etc. The FOIR will be minimised and make the applicant more eligible for the home loan.
- If the borrower chooses a lengthy tenor, it will make him/her more eligible to borrow a significant loan amount as the EMI gets reduced. However, the payable interest gets increased.
- Applicants can choose for a joint home loan with a co-applicant who has got a better credit profile. Hence, it can boost the borrower’s chances of getting the loan approved and make him/her more eligible for the higher amount.
- Individuals should provide authentic documents of a steady monthly income.
Moreover, individuals can get a fair idea about the EMI amount that needs to be paid by using a home loan EMI calculator.
Some reputed non-banking housing finance companies also provide a home loan eligibility calculator to ease out the loan process. They assist the borrowers to gauge how much they can avail based on their eligibility.
Read Also: How To Increase Your Eligibility To Get A Home Loan Instantly?
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