The key things is to check home loan eligibility terms of your lender in advance. If you are looking to buy your own home and plan to do that using a home loan, you need to be clear about a few things.Your home loan eligibility will also depend on a few factors if you are a salaried applicant.
Let’s check home loan eligibility factors affecting it in this post!
Common home loan eligibility terms at a glance
- You need to be a resident citizen of India.
- You need to be a salaried individual with at least 3 years of experience.
- Your age should be between 23 and 62 years.
What factors hamper your home loan eligibility?
You age is the first thing affecting your home loan eligibility. If you are a young applicant, you can get a large amount and repay it over a longer tenor. It is because you will have more workable years left. On the other hand, an applicant nearing his/her retirement may be eligible for a lower amount with a shorter repayment tenor.
Your work expertise
Since you are a salaried professional, leading lenders in India would like you to have a continued work experience.
If you have been employed with a known company in India, your home loan eligibility may increase. Your income will affect the decision of your lender to sanction your application or not. The higher is your income; the more will be your chances to get the home loan approval. You may have to submit the latest Salary slips to authenticate the same.
The higher is your dependents; the chance of your home loan application being approved. If approved, you may get a lower amount. To get approval for a significant amount, you need to prove that you can take the extra burden and repay the loan on time.
Your CIBIL score
A credit score of 750 or more is what renowned lenders consider to sanction your loan application faster and at a lower rate. You can maintain a higher credit score by paying your existing EMIs and other bills on time.
Your debt to income ratio
Home loans are long-term obligations, and lenders want to ensure that you can make timely EMIs. One of the ways your lender can check home loan eligibility of applicants is by looking at your debt to income ratio. If you are already paying many EMIs, you will have a higher debt to income ratio. In turn, it will bring down your debt to income ratio and boost your eligibility for a large amount.
This way, you can get a considerable amount and buy or build home home of your dreams.
Also Read: Loan Facts