A home loan is an ideal way to purchase one's dream home. However with the rising demand for such a loan, one would need to be eligible in order to get access to this borrowed funds. There are various factors that are needed to be taken into consideration when regarding home loan eligibility. In this process, the applicant's current liabilities, assets and income are scrutinized during the loan application process. In the event any of these factors are unapproved, there is a high chance one's eligibility for the loan is denied. Some of the tips that an applicant can consider to increase their eligibility for the home loan comprise of the following:
1. Invest your resources and time into your profile
Before one can begin the application process for the home loan, one would need to consider all the influencing factors that affect the eligibility of one's loan application. Factors like the CIBIL score and income value often play an important role in determining one's home loan eligibility. An applicant must check all these factors to ensure that they are above the acceptable mark before proceeding ahead with the application.
2. Clear out any existing loans or debts
If an applicant has any previous loans or debts that need to be cleared out, one should take the necessary steps to do so. Most financial institutes looks for signs which indicate the applicant's inability to manage a loan. One such indicator is the previous loans or debts that haven't been cleared out. If an individual does have such factors in their financial profile, one would need to either take the necessary steps to clear out these factors. Ensure that once these debts or loans are cleared, that you CIBIL score is updated. Alternatively, one can provide a strategized plan which showcases the repayment of both loans, without undergoing any financial strain.
3. Opt for repayment tenure that is acceptable to the financial institute
Different financial institutes will have different requirements. This also includes the repayment tenure. To improve one's home loan eligibility, one would need to opt for a repayment tenure that is long. Ensure that is satisfies the criteria of the bank, yet provides you with a flexibility to repay the loan with ease. The ideal repayment tenure in such a case should not be more than 25 years.
4. Opt for joint application on the loan
Most loans are designed for the requirements and financial habits of a single income individual. However, if your spouse is also earning a decent income, one can opt for a joint application for the loan. This increases the home loan eligibility drastically as there is a higher chance that the loan will get repaid successfully within the given time period. This also indicates that the liability of repaying the home loan is upon two applicants, thus reducing the chances of default payment.