Here Are Top 6 Factors That Affect Your Home Loan Eligibility!

A housing loan is an affordable financial solution when it comes to arranging for funds to purchase or renovate a house. Applicants can opt for a loan amount of up to 90% of the total cost and repay the amount over the chosen loan tenor extending up to 25-30 years. The current rate of interest for a home loan usually starts at 8.25% and goes up as high as 15% based on the borrower’s home loan eligibility. Due to housing loans offering a larger sum of money, lending institutions and banks have set eligibility parameters.

Top 6 Factors Affecting Your Home Loan Eligibility

Listed below are the most crucial factors that influence your home loan eligibility

  • Credit or CIBIL Score

Potential borrowers can go through the top home loan eligibility criteria mentioned below to ensure faster and hassle-free loan approvals. The most important factor in deciding whether your housing loan application will be authorized or not is your credit score or CIBIL score. It is a measurement of one’s credit behavior and repayment history. Lenders assess your credit score to evaluate your creditworthiness. A score of 725+ is typically seen as an ideal score as it implies a strong and clean repayment record.

  • Monthly Income

The monthly salary is yet another crucial factor affecting one’s housing loan eligibility. This is because banks and financial institutions want to make sure that the borrower has a strong financial background to repay the loan amount. Type of Employment

Banks typically prefer working professionals with a minimum of 3 years of experience in the public or private sector or in multinational companies. An individual with a history of frequent job changes or an unstable source of income is usually considered ineligible for housing loans since the lender does not see them fit to be capable of repaying the loan amount through regular payments.

  • Property Type and Age

Banks usually sanction housing loans based on the age and type of property. Therefore, it is advisable to choose a property that is moderately new to keep away from any hassle during the home loan application process Trusty Read.

  • Credit History

Without a credit history, it may be difficult to get the go-ahead for your housing loan application. This is because due to a lack of credit history, the lender has no reference point to analyze the credit score, which can be a hurdle in the path of getting loan approvals. Therefore, even if there are no lags in previous payment records, the lender will not take one’s word for that matter and will most likely put your loan application on hold.

  • Borrower’s Age

Lending institutions and banks often sanction home loans based on the borrower’s age. The younger the age, the more likely they are to pay the loan amount in full. Hence, the preferred age for home loan eligibility is between 23 years and 62 years. Generally, banks prefer potential customers to have a minimum of 10-15 years of work experience before retiring. Thus, age is a vital factor in housing loan eligibility.

Conclusion

A housing loan is certainly one of the most important financial obligations one can take in a lifetime. If not paid attention to, the burden can be financially distressing. Therefore, before applying for a home loan, borrowers must go through and understand all the home loan eligibility parameters so that their applications are approved and the amount disbursed at the earliest. Bajaj Housing Finance Limited is a smart option offering simple eligibility criteria and minimal documentation followed by quick a home loan process. You could also make use of their home loan eligibility calculator, which is user-friendly and available free of cost.

The qualification of a not entirely set in stone by thinking about different factors like the pay, existing commitments, financial record of the candidates, etc. Monetary Establishments likewise think about the reason for the credit – whether it is for the buy or development of a property or for taking an advance against existing property.

It’s significant for borrowers to properly investigate things prior to applying for a home credit. This includes gathering information about their budget, income, and credit score, as well as contrasting the administrations of various moneylenders. This will assist them with getting a sign of the amount they can manage and consequently pursue the most ideal choice according to their necessities.

Lenders assess your credit score to evaluate your creditworthiness. A score of 725+ is typically seen as an ideal score as it implies a strong and clean repayment record. like the pay, existing commitments, financial record of the candidates, etc. Monetary Establishments

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