How to increase your Home Loan Eligibility?
HOW TO INCREASE YOUR HOME LOAN ELIGIBILITY?
Owning a home or buying a home for family is a dream for everyone. It’s a very big decision for an individual that involves a lot of time, multiple processes and among everything, your loan eligibility. When you are looking to buy your dream home but do not have enough money in hand, a home loan can be the best option for you.
Home loan eligibility depends upon various factors such as age, source of income, credit score etc. When you apply for a home loan it is always important to check the eligibility criteria to get a clear idea of you getting a home loan or not. In this article we will be talking about some tips that will help you increase your home loan eligibility also increase your chances of getting one:
- Taking a joint home loan
- Maintaining a good credit score
- Listing your additional income sources
- Choose a longer tenure
Taking a joint Home Loan
If you are applying for a home loan and your income is low, then you can opt for a joint home loan where you can add a co-applicant who is your family member and is earning i.e., salaried, or self-employed. Adding a co-applicant will increase your chances of getting a home loan as both incomes will be combined to judge loan eligibility.
Maintaining a good credit score
While approving your home loan, your CIBIL score is one of the most important considerations. A better credit score will help you qualify for a home loan because a high credit score suggests that you have a strong repayment capacity. If the other elements are also in your favour, it will help you receive a faster loan approval. To know more about how to maintain a good CIBIL score please click here.
Listing your additional income sources
If you have other income sources other than your monthly income like, freelancing, bonus, rent, side business etc. it is beneficial that you declare this additional income while applying home loan. This will enhance your loan eligibility as your other income sources will ensure bank about your repayment capacity and will further increase your chances of getting a home loan.
Choose a longer tenure
Choosing longer tenure for home loan can enhance your loan eligibility criteria as this will result in lowering the EMI amount which will also ensure timely payment. The longer you consider paying the EMI the lower the amount of monthly instalment will get.