How To Be Eligible For A Home Loan

Updated: Feb 21

Buying a home is one of the most substantial financial transactions people experience in their lifetimes, so it’s no surprise, financing is one of the prodigious challenges buyers encounter when looking for a brand new home.

Banks run a radically inclusive process to direct the eligibility of a candidate for a home loan. The optimum eligible amount and interest charges are also determined by the bank/lender based on the applicant’s portfolio which comprises income, employment type, credit score, etc. There are positive changes for the Home-Buyers as reductions have been made in home loan rates.Home loan eligibility depends upon the repayment scope, income, prevailing loans or debts and the age of the loan applicant. Companies like Tema Fintech are facilitating Home Loans that are financially beneficial such as minimal EMIs where you can space out your installments over a longer tenure, desirable interest rates and some uniquely special advantages. This will help the buyers to attain the sophisticated home and lifestyle they have always been wishful for. Although the money constituents of home buying can be distressing , the pleasant news is there are steps you can take to guarantee an effortless process and optimistically refine your chances of getting sanctioned for your home loan.

1. Add a co-applicant

You can improve the eligibility for a home loan by computing an earning family comrade with a great credit score, as a co-applicant. Doing so will also amplify the maximum value that you can borrow because your EMI affordability will elevate. While estimating the eligibility for a home loan, some lenders may accumulate the earnings of family members.

2. Maintain a credit score above 750 A soaring credit score can augment your home loan eligibility since a high credit score specifies your high repayment capability. Having a high credit score can also attain you a lower interest charge from the lender. You should also inspect your credit score regularly so that you can take appropriate steps to improve your score if it is low to elude any home loan rejections.

3. Repay your debts obediently

Remunerating your debts earnestly can help construct a good credit score which, in turn, will magnify your home loan eligibility. Additionally, you must also have savings and investments which may also inflate your home loan eligibility.

4. Open an account with your favored lender

If, after surveying various lenders and comparing the advantages offered by them, you have determined a lender, it is a great idea to open an account with them. This should be done at least one year prior to applying for a home loan as you will have enough time to design a relationship with the lender. A good relationship with the lender will intensify your eligibility for a home loan.

5. Declare your additional income sources

Your eligibility for a home loan can be heightened if you proclaim any extra sources of income as it indicates your higher repayment capability.

6. Choose a longer tenure

Choosing a prolonged repayment tenure can strengthen your home loan eligibility as the EMI amount will be lesser which means that you are more likely to make punctual payments. To the lender, it will emerge as a lower risk lending to you and in the process, your eligibility for the home loan gets exalted. However, on the flip side, it may lead to you paying a higher interest charge over the home loan tenure.

Therefore , concluding our discussion, we need to be well informed and well-researched about financial decisions. Being punctual, transparent and having a good credit score can help you in the long haul while applying for a home loan.

Who would you choose as a co-applicant, your best friend or your sibling?

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