Know How you Can Increase your Home Loan Eligibility

When applying for a home loan, a lender will require you to meet multiple eligibility criteria because the lender wants to ensure that the borrower is financially capable of repaying the loan without falling behind on monthly payments. A lender will compromise your eligibility criteria based on multiple factors such as your age, monthly income, LTV ratio, property details, and any other existing loan obligations, and an online tool such as a home loan eligibility calculator can help you establish your home loan eligibility by entering minimal details about your home loan and the calculator will display results based on the details you have submitted. This online tool is free and simple to use, and it will allow you to manage your finances effectively.

Here is how you can increase your home loan eligibility by using a home loan eligibility calculator:

Step 1: Select one of the many online home loan eligibility calculators.

Step 2: Enter the following information into the calculator:

1. Gross Monthly Income 
2. Tenor Period (In Years)
3. Rate of Interest (Per Annum)
4. Other existing financial obligations (EMI)

Step 3: Submit the information, and the calculator will return the following results:

1. The monthly instalments you will be paying for the tenor of your loan.
2. The amount of home loan you will be eligible for

Here are some tips to help you improve your home loan eligibility:

Availing Of a Joint Home Loan

If you have a low income or do not meet all of the home loan eligibility criteria, you can avail of a home loan with a co-applicant such as your parent, spouse, sibling, or children. Applying for a home loan with a co-applicant increases your chances of approval and increases your home loan eligibility. On the plus side, the overall burden of your home loan is reduced, and the loan cost is distributed evenly among the borrowers.

Comparing Home Loan Offers

Before applying for a home loan, contact several lenders and compare the various aspects of a home loan, such as interest rate, processing fees, and other costs. The overall cost of the loan varies by lender, and comparing home loan offers will allow you to save a significant amount of money in interest payments over the life of your loan. Some lenders may even have more lenient eligibility criteria for home loans. Finding the best suitable lender based on your affordability can help you get a lower housing loan interest rate.