Tips to get your home loan approved

It has been common to take the home loan for buying a new house or a plot. Nowadays getting home loans was easy with the help of an online financial consultant. Even though there is no guarantee that all the applicants or loan seekers will get loans because banks also do through research on persons eligibility and credit status.

If in case, if you fall shorter on any parameters of creditworthiness then it becomes very tough to get yourself a loan.

Therefore you need to be very careful while you are looking to apply for home loan, please find the below steps to get your loan approved.

Loan amount

Banks won't lend you the entire amount as loan they only offer a loan worth 80-90% of the property price, So make other necessary arrangements to pay the rest as down payments

Credit Score Or Credit history

Again after applying for a loan the approval of loan amount depends on the financial records of applicants, Banks will check present and past credit history and the credit score of an applicant. If the credit score of the applicant is better then banks will take no time to approve your loan because of your repaying capacity is high

Never be defaulty to banks or any other financial institutions because it will impact your credit score.So, make sure your credit history is free of blemishes and your CIBIL Score is at least above 750.

Loan eligibility

The eligibility criteria for home loan varies from bank to bank. Your age, employment status, Income etc are taken into consideration while checking your loan eligibility. To avoid rejections make sure to check your home loan eligibility norms before you apply for home loan.

Documents required

Apart from the regular KYC documents, which furnish details like your age, address, and income proof, you are required to submit a copy of your salary slip (if salaried) and IT returns for the last three years.

For the self-employed, a copy of the balance sheet, profit and loss account statements and IT returns of the last three years certified by a chartered accountant are required. Property documents along with the original copy of your sale agreement are to be submitted as well.

Joint applicant or guarantor

If you are falling short of the loan eligibility requirements, you may be asked by the bank to have a joint applicant (such as your spouse) or a loan guarantor, whose job it is to ensure the loan gets repaid.

For example, your credit score may be unsatisfactory, but your spouse’s credit score may be able to raise your score to an acceptable level if you apply together.

Legality of the property

Any unsettled disputes with the property can lead to rejection of the loan. Before sanctioning a Home Loan banks run a background check on the property as well as the builders to make sure that the property has clear titles and is dispute-free.

Loan protection plans

Since Home Loans have a long tenure, the need for Home Loan insurance should not while.

Loan insurance comes in handy if you happen to pass away at some point during the loan tenure, or go through a temporary income loss due to unemployment or disability. With defaulted insurance, the burden of repaying your loan will not fall on your dependents.

Getting a home loan is easy once you have all your documents—and your expectations—right where they need to be. To avoid the hassles of paperwork, you can always go online, compare and apply for home loans at lowest prices, apply for a loan easily through your smartphone.