Advantages And Disadvantages Of Home Loan Eligibility Calculator

By Author: Aishwarya Mahurkar
Total Articles: 33

Home loan eligibility calculator is just an online tool that can offer you better insights into your housing loan packaging and approval. However, it does have its own advantages and disadvantages. Output from this tool is mostly helpful. But, it has a limitation too. So, consider these details well for your housing loan eligibility.

Advantages:

Your house loan approval depends upon your eligibility. Home loan eligibility calculator offers a basic understanding of principal amount that you can avail from housing finance company. At times, it is enough for your dream home. At times, it is no way closer to that. However, housing loan eligibility calculator is beneficial tool. Check out its main advantages.

Understand your home loan eligibility in two minutes

How much amount can you borrow? Can you afford 2 BHK, a villa or 1 RK in it? There are just too many questions about home loan eligibility that befuddle house loan borrowers. This one simple tool can give you approximate yet definitive answers for these questions. Home loan eligibility calculator will identify the entire amount you can borrow within your current income streams. This can help you narrow down neighbourhood, carpet area and number of rooms very easily. Isn’t that really helpful information in few minutes?

Plan your home loan better

How does a rough estimate of principal amount you are currently eligible for help you? You can plan to increase your income to afford your dream house. You can plan to negotiate better with the builders or private sellers. You can shift to a different neighbourhood. You can consider several possibilities in terms of home loan interest rates, or repayment options to afford your dream home. Housing loan eligibility calculator can allow you to plan your house purchase and house loan more accurately. This strategic foundation will be vital to your personal finances in the long run.

Disadvantage:

You cannot depend on it entirely

You can run several home loan calculations with housing loan eligibility calculator. Your eligibility will vary based on the number of productive years available, home loan interest rates and your monthly income. An efficient home loan eligibility calculator can incorporate that into your calculations. However, do you have current credit card debt and personal loans? Do you have own a business? These are few other factors that will affect your eligibility as well as approval. But, any housing loan eligibility calculator cannot incorporate all facets of your income and eligibility efficiently into a calculation. You may get a loan rejection in spite of meeting your basic eligibility requirements easily.

So, use the home loan eligibility estimates well. But, be smart and don’t rely on them for loan approval.

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 Home loan eligibility calculator & opt for a home loan eligibility calculator that help to make the best decision.