Applying for a housing loan requires careful planning and complying with the procedures. Here are a few simple yet effective tips to get your home loan approved easily.
For most aspiring home buyers in India, availing a home loan is the most feasible way to get the funds for the purchase. But, since home loans involve a huge sum, the lenders consider several factors before approving their application. This is to ensure that the borrowers don’t default on the repayment and can recover the money on time.
Even a small mistake in the home loan apply online process can result in rejection or delay in the approval process. Hence you must be careful while applying for the loan. Here are a few tips to get the loan approved easily.
- Assess your financial condition
Before you start looking for the best home loan offers, you must take your time to assess your current financial stand and determine if you have the necessary resources to pay back the loan. One of the primary prerequisites that the lenders look for is your ability to repay the EMI on time based on your monthly income (which varies from city to city).
Knowing your repayment capacity and the minimum salary requirement of the specific lender will help you get your loan approved faster and without any hassles.
- Make a higher down payment.
When you apply for a home loan, the lender will require you to pay at least 10-20% of the loan amount upfront as a down payment. It is a part of the approval process. Experts suggest paying more than the minimum required down payment as it will help you reduce the amount borrowed. And the lower the amount borrower, the easier will be the repayment. Also, the lender may give you a discount on the interest rate, which can further make the loan affordable. Furthermore, when you pay a higher down payment, it reflects your strong finances to the lender, and you will get your loan approved easily.
- Maintain a good credit score
All lenders check the CIBIL score before approving the home loan. The CIBIL score, a three-digit number, reflects your creditworthiness and shows your credit repayment history. Hence, it is important to maintain a good credit rating while you apply for a home loan. If you have any outstanding debts like credit card bills or other loans, make sure to repay the amount in full even if it is small.
Also, it is advisable to avoid submitting multiple loan applications with different lenders at the same time. When different lenders check your credit report, the lenders may believe that you are desperate for credit, which may affect your credit score. Also, the lender may consider you as a high-risk borrower and may reject your application.
- Apply for a joint loan
It is better to apply for a joint home loan with any of your family’s earning members, including spouse, sibling, or parents. This not only increases your loan eligibility, but also you have higher chances of getting your loan sanctioned faster. All lenders in India allow you to combine the co-applicants’ net income to showcase your repayment capacity.
- Be careful while filling the application form.
One of the worst yet common reasons many home loan applications get rejected is not filling the application form correctly. So, when you fill the form, be careful, and provide correct details in every field. If you don’t understand anything, you must get clarity from the loan representative.
Also, being thorough with the form helps you understand the various clauses and avoid any unnecessary shock later-on.
Through the home loan application process, you must provide the necessary details to the lender honestly and submit the relevant documents. Complying with the rules will help you get your loan approved easily.