Rate of interest, processing fee, tenure and price may vary from bank to bank
Every sector has suffered heavy losses during the Corona epidemic. In the Corona crisis where most of the business came to a standstill. In such a situation, as soon as the situation improves, there has been a record-breaking increase in property prices. Most people plan to buy a home by taking a home loan during the festive season itself. And also work on this planning. If you are also applying for a home loan, or even thinking. So it is very important to know these important things before that.
The rate of interest, processing fee, tenure and price may vary from bank to bank. Therefore, it is important to compare as many banks as possible before taking a home loan. After this, first of all, find out in the bank in which you will have your credit or deposit account. Because most of the banks bring many offers for their customers. Under this, you can get a home loan offer at much better interest rates. Otherwise, if you want to take a loan from another bank, then compare the loan offers. Find a better option.
view credit score
Any bank definitely takes into account the credit score while evaluating the home loan application. A credit score of 750 or more increases the chances of loan approval. But at the same time it can also provide low interest rate. Therefore, before applying for a home loan, it is important that you check your credit score. Applicants with a credit score lower than this will be able to take necessary steps to improve it.
View EMI Capacity
Before giving a loan to the applicant, any bank looks at his past history in a good way. For this, apart from the credit score, the repayment capacity of the applicant is also considered. The bank thinks to give loans to those people only. Who spends most of his income 60 percent in EMI payment. This is called the income-to-date ratio. On the other hand, those who spend more than the limit, the chances of getting the loan approved are less.
Low credit score, high income-to-date ratio are some of the reasons why home loan applications get rejected. If the applicant wishes, he can increase his home loan eligibility by making any earning member of his family a co-applicant in the home loan application. This is especially for those people. Those who have stable income as well as have a good credit score. The chances of getting a higher loan amount from the co-applicant increases.
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