A Complete Guide for Your Home Loan

Everyone wants to buy their dream home, but due to the enormous loan amount, for many, it also represents a significant financial commitment. Because you are obliged to make monthly payments for your house loan and defaulting on these payments could result in your property being taken by your lender, you must carefully arrange your finances before applying for a home loan.

Here are some things you need to keep while applying for a home loan:

1. Credit Rating:

A lender will carefully review your credit history to make sure you have paid all of your obligations on time and have not defaulted on any of your past loans. A CIBIL score is used in India to determine your financial background. If your CIBIL score is higher than 750, the lender will be more likely to provide you with fee lending terms and a lower interest rate. This is because a high CIBIL score demonstrates to the lender that you are creditworthy. 

2. Approaching Multiple Lenders:

It is important that you research the market for multiple lenders that are offering house loan because each lender operates on its own lending terms and the interest rate differs from one lender to another. Researching multiple lenders will help you gain a better perspective and make an informed decision.

3. Loan Eligibility: 

When you are applying for a home loan, the lender will lay down a couple of eligibility criteria. Here are some eligibility factors that you must keep in mind:

    a.The applicant must be between the ages of 23 and 60 years old.

    b.Your loan principal amount 

    c.The amount of money you are willing to put down as a down payment

    d.The applicant must have all their documents in order