Documenting Your Dream Home: A Guide to Required Housing Loan Documents

1. Know What Are the Factors That Help in The Enhancement of Your Home LoanEligibility Home loans are one of the biggest loans that involve a lump sum. Hence it is treated with caution by both lenders and borrowers. Before sanctioning the loan, lenders consider several factors before approving your loan application, starting from your age, income, remaining working age, credit score, LTV ratio, type of property, etc. These factors decide your eligible amount and interest rates aswell. It is always important to know your eligibility beforehand from your lender’s online before going for a loan. This crucial step is important for your easy loan approval in the first try. Here are a few easy tips to improve your home loaneligibility. Know the Factors That Help in The Enhancement of Your Home LoanEligibility Pay Off Your Existing Loans Before You Apply for a Home Loan Pay Off Your Existing Loans Before You apply for a Home Loanbecause borrowers who are debt-free are considered more by the lenders. Leaders consider that loans already burden the borrower, and an added loan will lead to untimely payments of EMIs. Paying off your existing loans to help improve your chances of getting a home loan sanctioned. Lenders consider your existing loans as a criterion for loan rejection as home loans involve a huge sum. Paying off your existing EMIs and repaying your credit card on a timely basis will help your housing loaneligibility.

2. Opt For a LongerTenure • Loans with longer tenure assure the vendor that you have time to repay the loan. Longer tenures result in smaller instalments. It will help you make timely payments resulting in reduced defaulting of theloan. • Improve Your CIBILScores • Credit scores play an important role in loan sanctions. Credit scores determine the spending behaviour and loan repayment habits of the loan applicant. It is taken as a credibility statement to determine if the applicant is risk-free. Lenders expect a score of 750 out of 900 to deem a borrower as eligible for the loan. Credit scores are determined based on timely repayments of your loan and credit card bills. Hence by paying off your debts on time, you can maintain or improve your credit scoresdrastically. • Add Another Source of Income IfApplicable • You can add additional sources of income to your application to secure a higher loan amount. The additional sources of incomeinclude • Rentalincome • Part-timebusiness • Hobbyincome • Rent received frommachinery • Familypension • If applicable, declaring other sources of income will increase the chances of loan approval as it improves your financial health. • Add aCo-applicant • Adding a cop-applicant who is mostly your working spouse with a good credit score will help you avail of a joint app loan with a higher loan amount sanction. Co-applicant can bespouses,family members and siblings. The lenders club the income of family members to see the increased EMI affordability and sanctions a higher sum for such applications. • Open An Account with TheLender • If you consider taking a home loan, there is still time for you to find the property. Then open an account with the lender before applying for any loan. Having an account in the lender’s bank will give you a preference by your lender to sanction theloan. • Consider Step-up Loans • Home loans, in general, are long term in nature and difficult to obtain post-retirement. That said, taking home loans at later stages like the ’30s or ’40s will not help you avail of longer tenure EMI. Step up loans are excellent options for people who would like to pay lesser EMIinitially

3. and gradually increase them with time. This way, your loan amount will increase when finances improve, giving you financial security at alltimes. • Compare Home Loans Offers from MultipleLenders • Credit risk evaluation of home loan applicants differs from vendor to vendor. Interest rates, processing fees, tenure, offers vary from lender tolender. • Few lenders offer preferential rates and offer prospective loan applications with existing customerrelationships. • Hence it would be best to compare as many lenders as possible before settling, to get the optimal loan amount at the best interest rate andtenure. • Do not apply for multiple loans to enhance the chances of approval, as these will negatively impact your credit scores, leading to loan cancellation. Check for the best offers in the lenders online portal to select yourlender. • Check out the home loan eligibility calculator on your lenders’ website to understand the eligible sum. Your eligibility is higher if your income is stable andincreased. • While you improve on your housing loan eligibility, analyse the lenders who offer competitive interest rates and the best home loans in themarket. • The tips mentioned above can help you enhance the home loan eligibility before you apply for a home loan. Follow them before applying to get a loan to acquire your dream home with a good loan amount easily.