Having a house at the desired location is still a luxury for most of us. The middle-class strata hardly manage to earn the basic need in this era of inflation. Most of us are left with the only option of a home loan when it comes to making their dream of buying a home come true. As the business of home loans involves a handsome amount of money, so it takes a lot of time and consideration to get approved. Banks ensure that you have a good credit score, and you will repay the loan on time. If you get rejected for a home loan once, then it will affect your credit score, and you will be red-flagged for other lenders too. Hence you need to be very careful and alert while applying for a home loan and avoid even a simple mistake or a small miss.
Consider these effective tips to get your Home Loan approved instantly:
Know your repayment capacity
Knowing your financial condition is extremely crucial to make sure your application gets approved. You should have a close look at your finance and calculate whether you can repay the loan on time. Many banks or lenders have a minimum salary requirement that varies from place to place. One crucial requirement is that you pay all your EMIs on time.
Pay Higher Down Payment
Always try to borrow less amount of money as a loan. The less you borrow, the less you have to repay and lesser you have to manage your finances. Once you made your mind to buy a property the next minute, you try to own it. Take your time plan your purchase and try to pay at least 20% of the property cost as a down payment. It will cost you less on the interesting part of the loan, and the lenders will treat you as a customer with low to their money.
Maintain Your Credit Score
Your credit score or CIBIL score is a crucial deciding factor for the moneylender when they are to give you a home loan. As your credit score tells them the story of how prudent you are with your investments, all your previous loan records, and how much new loan you can handle in terms of repayment. For getting a home loan, you need to maintain a good credit score and have a clean financial business with your previous lenders. Clear all your debt and pay your credit card bills on time. Pick a renowned bank for a home loan and do all the background study and homework so that your application gets approved. Submitting multiple applications for home loans and getting rejected can adversely affect your credit score.
Utilize the Co-applicant Feature
When you apply for a home loan, you get a feature of giving a co-applicant name. Always utilize that feature as it can significantly raise the chances of approval of your loan application. You can add your parent or your spouse as a co-applicant. If your co-applicant is earning, your lender will allow you to club the net annual income of your co-applicant while applying for the loan. In such cases, they approve your loan application even then also when you alone don’t qualify as an eligible borrower. As the clubbed net income gives them a surety that you are capable of repaying the loan just in time.
Fill the loan application form carefully and check all the documents
An incorrect application can be the silliest reason for your loan rejection. Hence you are advised to fill the form carefully, read between the lines of every clause to make sure that there are no hidden clauses, check your account numbers and salary details twice after writing.
How to improve your home loan eligibility:
Always have an eye on your credit report and look for errors in it. If you find any mistake or discrepancy in your credit report, you can contact your financial institution. You can also contact CIBIL to get such a problem resolved.
Be alert and quick in responding to your lender. Always make sure that you respond to requests from your lender at the earliest. Replying late can also lead to application rejection.
Taking a home loan is a big decision in terms of your finances. Hence you need to be honest about all the details and documents you’re submitting in that regard. For any reason, anything goes wrong, then you can land up in a critical legal situation, and any stringent action can be taken against you. If you any doubt about your eligibility for a home loan, you can always use any home loan eligibility calculator widely available online.