For many aspiring homeowners, getting a housing loan is essential to meet the expenses of purchasing a home. However, as home loans require a huge amount of funds, their requests are accepted only after much deliberation. This is to guarantee that there are no bad debts, and the borrower returns the loan value on time.
However, a simple error or a slight slip can result in a home loan request dismissal. A home loan denial from one bank can impact the credit score of the borrower further raising a red flag for other banks too.
Here are some useful tips to get your home loan approved instantly:
Comprehend your Financial Position
You must make a close watch at whether you hold the finances to repay the loan conveniently. One of the principal terms of availing a Home Loan is to settle your EMIs in a stipulated time.
Many banks will hold a minimum salary term, which differs from city to city. Understanding your repayment capability is essential to ensure your loan request gets accepted.
Make Higher Down Payment
Once you identify the value of the property, you need to buy, attempt to pay at least 20% of that value as a down payment. The more limited funds you borrow, the less you require to pay back. It might also seize you a lower interest rate and make banks treat you like a client who holds a low risk to their finances. You can use a home loan calculator to calculate your monthly instalments.
Sustain your Credit Score
There are methods to increase your home loan eligibility. Most banks will monitor your CIBIL score before accepting a home loan request. Your credit score indicates how meticulous you are with your finances, past credits due, and how much further loan you can repay.
To sustain a healthy CIBIL score for a home loan, you must hold a spotless financial record. Ensure your credit cards aren’t outstanding and evacuate all your remaining debt. Submitting many applications for home loans can also impact your credit score if they get repudiated.
Choose your bank prudently and ensure that you only apply if you are positive of it getting accepted. Any error or flaw in your credit report can restrain your loan application to progress further.
Employ the Co-applicant Feature
If you can, strive to get your spouse or parent to be a co-applicant. This can significantly increase the odds of getting your request approved, particularly if your co-applicant is also earning a sizable income.
Banks permit you to club the net earnings of your spouse or parent while applying for a loan. This allows them to understand that you are competent in paying their loan back in time, even if your earnings solely does not qualify you as an acceptable borrower.
Pay Regard to the Application Form and Documents
One of the most unfortunate reasons for getting a home loan application rejected is an inaccurate application form. Be very cautious in filling up the application form.
Being careful with the form will further ensure no concealed conditions that could get you off-guard later. Avoid making errors with your salary details and account numbers.
You must reveal all information which is related to your application during the home loan application process. Be fair about the details you are presenting to evade a Home Loan rejection.