10 simple secrets for improving loan score

A house of one’s own is a dream many earn to achieve at some point in their lives. Owning a house is a matter of pride for many individuals and many consider it a glittering milestone. A house is not just a place of shelter anymore, but a place full of peace, positivity and joy. It shapes individuals residing within and promotes a healthy relationship between family members. The path to owning one’s dream is a tough one, but the ride can be smooth if one knows how to go about it.

Finance is a major contributor towards how fast one realizes their dreams of owning a home. Some people have a fat bank balance while others seek help from their near and dear ones. But a vast majority has an affinity towards home loans – the best and realistic way to making one’s dream of owning a home come true.

So how do home loans work?

One looks for the best financial lenders dealing in home loans and zeroes in on the one which seems affordable to them. They go to that particular lender and apply for a loan. Simple isn’t it?

Unfortunately, it’s not that easy as it sounds. Huh? But, why?

This is where home loan eligibility comes into the picture.

In order to obtain a home loan, an earnest desire is simply not enough. One needs to prove that one has the capacity to pay back the loan at the end of the home loan duration. This is because banks need an assurance that they will get their money back.

Any bank in the market mostly looks at one’s history of debts and their repayment to assess whether the loan should be provided to the individual or not. A prompt and regular repayment history is likely to leave the lender impressed. This is reflected in the CIBIL score of an individual.

Home Loan Eligibility

Another aspect that banks consider is the income capacity of the individual. Banks try to determine if the individual will have enough money to pay the monthly EMIs (Equated Monthly Installments) of the loan.

Banks take the final decision to provide one with the home loan when they are completely satisfied with the above aspects of an individual.

So, how to impress banks with a desirable home loan eligibility?

It is a total breeze if one follows these 10 simple tips for improving home loan eligibility:

• It is always ideal if one opts for a longer home loan tenure. The longer one’s home loan tenure, the bigger the home loan eligibility. The amount of EMIs to be paid for the home loan will be lower due to the long duration of the loan.
• Clubbing the income of close family members like spouse, parents or siblings can increase one’s chances of obtaining a home loan. Any lender would be willing to lend out a home loan, seeing the combined weight of such an income source.
• For those individuals who are below the age of 35, it is viable to opt for a step up home loan. This is an amazing way to improve one’s home loan eligibility.
• Under certain circumstances, a bank would not be willing to consider certain sources of income presented by the individual for the purpose of obtaining a home loan. To convince the bank, it is better to show a proof to validate the existence of such a source of income.
• If one is thinking of relying on a home loan to finance the entire cost of the proposed house, WAIT! Don’t do it yet. The chances are slim for getting a home loan. Instead, why not take just 70% of the cost of the property compared to the normal 85% as the loan amount? There! One’s home loan eligibility just increased a notch in the eyes of the bank.
• Have any loan that one has taken from a famous lender and repaid it successfully? Flaunt it to the prospective bank from which one is planning to take a home loan. This rapidly increases one’s home loan eligibility.
• If one has an awesome relationship with one’s existing bank, why go elsewhere? Even if no other lender is willing to provide a home loan, one’s existing bank’s always got one’s back.
• The younger one is, better the chances of improving home loan score. Age is also hence, a crucial factor.
• If one has been jumping jobs, that’s a bad sign as far as a lender is concerned as they tend to be suspicious about one’s income stability. Try not to be tempted for frequent job changes for improving home loan score.
• The dream of owning a home is precious. Hence, entrust it in reliable hands. Choose the best and most trusted real estate developers/contractors. Additionally, one also increases one’s home loan eligibility.

Home loans are a wonderful way to realize these invaluable dreams of owning a home. Don’t lose hope if any lender closes the door, another’s door will always be open.

Apart from not losing hope, following the above mentioned tips for improving home loan score will definitely help ensure the availability of the required home loan amount within the shortest duration.

Improve home loan eligibility and materialize the home of one’s dreams.