There are a few things to keep in mind to increase your eligibility for a home loan.
How to increase eligibility for home loan: Buying your own house seems difficult in today’s era. Considering the state of the real estate market today, it looks extremely expensive. But you can fulfill the dream of your own house by taking a loan from the bank. Banks follow a detailed procedure to ascertain the eligibility of the applicant for a home loan. The maximum amount and interest rates are also decided based on the profile of the bank applicant which includes income, type of employment, credit score etc. There are a few things to keep in mind to increase your eligibility for a home loan. Let’s know.
add a co-applicant
You can add an earning family member who has a good credit score as a co-applicant to increase the eligibility for a home loan. By doing this you can also increase the maximum amount that you can take a loan. Because this will make EMI more economical. While calculating home loan eligibility, some lenders may add the income of family members.
Keep your credit score above 750
Having a high credit score (above 750) increases your eligibility for a home loan as a higher credit score shows that you have a higher loan repayment capacity. Bank also gives you loan at low interest rate due to high credit score. You should check your credit score regularly, so that if it is low, then you can take some improvement steps to raise the score to avoid getting the loan rejected.
Pay your debts and dues on time
Paying your loan on time helps you to maintain a good credit score. This increases your home loan eligibility. Apart from this, you should also save and invest, which also helps in increasing your eligibility for home loan.
Open an account with your lender
If after looking at different lenders and comparing the benefits offered by them, you have decided on the lender. So it would be good that you open an account with him. This should be done at least a year before applying for a home loan, to give you enough time to develop a relationship with the lender. Having a good relationship with the lender increases your eligibility for a home loan.
Declare your additional sources of income
Your home loan eligibility may increase if you declare additional sources of income. Because it indicates that you have more capacity to repay the loan.
choose long term
A longer loan repayment tenure increases your home loan eligibility as the EMI amount will be lower, which means there is an increased chance that you will be able to make timely repayments. The lender will take less risk in giving you the loan. This will increase your eligibility for home loan.
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