Home loans bring you one step closer to fulfilling your dream of owning a house. They are easy to obtain online without any hassle. The application process is straightforward, which you can complete with ease. You also get great offers if you exceed the lenders’ expectations in meeting the set parameters.
The easiest way to check this is w the home loan eligibility calculator available on lender websites. It gives you an idea of your eligible amount and equated monthly instalments. It gives you exceptional results catering to your requirements and the input you provide. It also varies based on lender policy and offers. Here are the standard eligibility criteria to give you an estimate.
Employment type: It is an essential criterion that affects how the lenders calculate home loan eligibility and other parameters. It is because it differs for the salaried, self-employed and business professionals. The income for these categories is distinctive as they have different repayment capacity, financial standing, etc.
Age: Most banks and financial companies offer loans to applicants aged between 21 to 65 years. You get a higher loan tenure with lower EMIs when you apply for a younger age and vice versa. This is because lenders favour younger applicants as they have more years left for repayment. You also have the scope for career growth and increase of income as compared to older candidates.
Credit rating: It is a significant factor considered by lenders to judge your home loan eligibility. A credit score ranging between 750-900 is deemed favourable. They also offer better deals and home loan interest rates if you have an excellent rating as you settle their risk aversive concerns as you have a good record of repayment in the past.
Earnings: Your monthly income also plays a huge role in showing your financial feasibility to the lenders. You might think that offering collateral should settle their concerns about risk. However, it is the last resort they consider security to recover funds if you fail to repay. They still would assess your eligibility for home loan based on your income stability to ensure regular repayments.
Other obligations: This aspect is of prime importance to lenders apart from your income. No matter how much revenue you have, it would not suffice another debt if distributed to fulfil multiple obligations. Hence, you are asked about the total EMIs you have in your loan application. This helps lenders decide your home loans eligibility and if you are financially viable for repayment.
If you meet the mentioned criteria, you qualify for loan approval. Ensure to have all the documents as proof to complete the process hassle-free.
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