Given the large amount of money required to buy the house, most aspiring home owners will go with the option of picking up a loan to be able to fulfil their dream. Following is the list of a practices that you must follow for an easier loan approval.
Check the eligibility
Capacity to repay the loan is one of the major considerations in any loan evaluation by the bank. Therefore, you must calculate the amount that you would be eligible for before you apply for the loan. This will help you plan your finances or hunt for properties that would fit into the budget. Many a times the borrowers fall short on the loan amount and the last moment endeavor to arrange funds lead to anxieties. As a thumb rule, you would be permitted to serve loans with EMIs totaling to half of your salary. Say for example you apply for a SBI home loan, your all EMIs put together, including the new home loan EMI should not be greater than 50% of your income. So if your income is 50,000 all EMIs must be less than 25,000.
Good credit profile
A good credit profile is something that is a must to avail any credit facility. Intelligent borrowers are cognizant of this fact and keep working regularly on their credit profile. So do check your credit report before applying for the loan. The fact remains that 25% of reports have errors that can lead to low CIBIL score which in turn will only result in rejection of your application. In case you find any issue please have it resolved. Or even if without any issue you have a low score work towards it’s improvement for easy approval on the loan.
Check on the loan availability on the property
Most of the times people think that since the loan is going to be against the property, it will be a smooth sail. Well, that is not true in all situations. The banks have their own list of properties that would get funded for a home loan. The properties can be of two sorts. Either an apartment or an independent house. In both the cases, do check out the probability of the targeted property being funded for purchase. There have been innumerable instances where the house buyers’ payment made to the developer or owner has been lost on account of the property not being an approved one.
Higher down payment
A higher down payment will only ensure a easier loan approval. Why? There are obvious reasons to this. A higher down payment only indicates towards the borrowers financial strength which as mentioned above is one of the critical considerations in loan evaluation process. Secondly, the same will give the housing finance company an additional cushion on loan to value. A lower funding against a higher value property is always a far more secured lending.
Providing a co-applicant will further enhance the smother and speedier approval of your loan request. This gives the banks a comfort to involve another individual on repayment if the loan flows into default. This in fact even gives you the opportunity to go for a higher loan amount if needed since the co-applicant’s income will also get factored in the loan.
Keep documents ready
Providing all relevant documents is a must. Inadequate documents will only lead to delays in the approval. Also please note that In case you fail to produce all the documents in original immediately on approval, the loan might just get delayed on disbursal. In a worst case situation the same may even get canceled on account of shortfall on required documents. So keep your KYC and income documents handy for a speedy approval and disbursal. Same goes with the property related documents. In the absence of all required documents the loan will get delayed or canceled.
Your email address will not be published. Required fields are marked *
Individuals love their credit cards, and the lifestyle it will probabl ...
Nice Article. There is always pros and cons of every aspect. Indian Cu ...
Thanks for finally writing about >Why Indian women fall short on cr ...
Daily Tips to stay Credit Healthy
© All Rights Reserved at Credit Sudhaar