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5 Factors That Can Influence Your Housing Loan Approval

By Author: Aishwarya Mahurkar
Total Articles: 291

The process of obtaining approval for your home loan is extremely long. There are several factors which can influence the approval of your housing loan. One needs to be aware of such factors so as to ensure yourloanapplication gets the bank’s approval without a hitch.

Five basic factors which can influence your housing loan approval are:

1. Credit Score

Credit score is one of the most important factors which a bank considers when deciding whether or not to approve your home loan. You should ensure that all your credit card payments and re-payment of prior loans is done in a timely manner. One must try to reduce the number of unsecured loans in their name. If there are discrepancies in re-payment of loans and credit card bills, it will affect your credit score negatively. The higher your credit score, the better are your chances of obtaining the loan you require.

2. Income Statement

Your income statement portrays your overall expenditure and income every year. Banks usually prefer to provide house loans to applicants who hold a steady job as this ensures that they have the ability to repay the instalments consistently every month. They prefer applicants who have the ability to maintain a steady job instead of constantly switching which is believed to be a sign of unreliability.

3. Property Papers

It is extremely important to have all your property papers in order. Some important documents you must submit with your home loan application are the sales deed, RTC extracts, Joint Development Agreement, etc. Correct property papers are extremely important for your house loan approval. It is important for the bank to have all the details about the house you wish to purchase for their records. This is done to ensure that the amount of loan you are applying for is legitimate as well as that the home being purchased has been built with all the correct approvals and has followed correct procedures.

4. Basic Documents

It is vital that all your basic documents consisting of identity proof, address proof, age proof and salary documents are up to date. Any differences in these documents may cause the bank to reject your housing loan application. Banks receive a credit report which is inclusive of all your personal details. So if the bank finds any difference in your home loan application and that of your credit report, your application is most likely to be rejected. Always ensure that the information you provide is correct and up to date to avoid issues.

5. Number of other loans availed

The number of loans you are currently liable to pay off does factor in when a bank is deciding whether or not to approve your house loan application. Too many loans might deter a bank from approving your loan application. This is because too many pending loans reduce your credibility to pay back the instalments every month.

Before you apply for a housing loan it is extremely important that you plan your finances correctly. Try to pay off your pending loans as it increases your credibility. Also, most importantly, ensure you have all the correct documents which are up to date. Following these steps will increase your chances of getting your house loan approved immediately.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the housing loan and the Home loan.

Total Views: 88Word Count: 557See All articles From Author

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