ALL >> Investing---Finance >> View Article
The 3 Factors Affecting Your Home Loan Eligibility
Total Articles: 33
There are several online home loan eligibility calculators that focus on two crucial points: the amount you need and your repayment ability. The amount you need depends upon the property and the repayment ability depends upon your past credit history and income. Though your home loan eligibility gets measured through several factors, they have been clubbed into three aspects of your home loan application.
When you apply for a home loan, the first and foremost consideration is the property and it’s pricing. When you opt for a house loan from a housing finance company or a bank in India, the first asset of the lender will be the property. If the lender deems it as a good investment that a borrower can afford, then the home loan processing is much easier. However, if you are gunning for a property that is barely within your current financial means, the lenders will test and vet every facet of your repayment ability to ensure that you can repay the said loan comfortably.
Your credit history:
Your credit history will reveal the footprint of your upcoming credit behaviour as you take on this huge home loan. It will take approximately 15 to 30 years to repay it. So, they take a look at few crucial facets of your credit history such as:
• Utilities and other bill payments
• Credit card debt and repayment
• Recent personal loans
• Recent loan applications, approvals and rejections
• Your assets and liabilities
This offers a decent understanding of your credit management skills. It will enable the organization to evaluate you as a home loan borrower. Though all the home loan eligibility calculators do not ask for this kind of information up front, some do. But, most lenders run a background check to discover the necessary details.
Your professional credibility:
Though credit history is very important, a source of income will be important just as well. If you cannot continue to earn, you will fail to repay the housing loan EMIs. So, you should be able to prove that you have a dependable source of income. This is one of the reasons the best home loan eligibility calculators ask for the type of employer . Government employees are perceived to have the most secure jobs as well as PSUs and big corporate organizations. However, private contractors, freelancers, entrepreneurs, private organization employees have relatively unsecure jobs and need to prove their mantle. So, if the housing loan eligibility calculators are not responding positively to your loan application, you can consider adding a co-applicant with a secure job or by approaching the branch personally where you can display your professional credibility.
Author Bio :
The author is a seasoned writer on finance topics and she articulates aspects that are important to people availing the home loan facility. She writes about a variety of topics covering the home loan documents, rates & the uses of online home loan eligibility calculators & best home loan eligibility calculators that help to make the best decision.
Investing / Finance Articles1. How Bad Credit Loans Work For Better Financial Solutions In The Uk?
Author: Sara James
2. The Free Forex Robot Minimize Risk And Maximize Profits In The Forex Market
3. How The Internet Has Made Money Transfer To India Simple?
4. What Are The Major Advantages Of Bill Discounting India?
5. Best Home Loan Scheme 04433044488 Documents Required For Home Loan
Author: Loansa Assit
6. Algotrade Can Help You Gain Consistent Returns On Forex Trading
7. Did You File Itr For Financial Year 2016-17?
Author: Did You File ITR For Financial Year 2016-17? India
8. The Advantages And Disadvantages Of Life Insurance
Author: Sushant ingh
9. Important Aspects Of Banking
Author: Sushant Singh
10. Are You In Need Of Monetary Help For Business Establishment?
Author: John Bairstow
11. Borrowing Commercial Loan Is A Secure Way For Business Owners
Author: John Bairstow
12. The Race To Transform Yourself Into A Profitable Forex Trader
Author: John Arnold
13. House Construction Loan For Bkhata Property Apply 9964563600
Author: House Construction Loan for Bkhata
14. Gst Impact On Mutual Fund Market
15. Klse Market Understanding Before Investing
Author: Multi management and future solutions