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How To Check Your Eligibility For Housing Loans Easily

By Author: Aishwarya Mahurkar
Total Articles: 291

Purchasing your dream home can be expensive requiring you to apply for a home loan with a financial institution. Unlike what many believe, a bank does not always provide the loan amount you apply for. There are several factors which determine whether or not you are eligible for the home loan amount you are applying for. It is hence best to use a housing loan eligibility calculator to check the amount of loan you re currently eligible for. This will help you take measures to increase your eligibility with the bank.

Most banks provide their customers with housing loan eligibility calculators. A home loan applicant must take advantage of this. The eligibility calculator keepings in mind the following factors when calculating one’s loan amount:

1. Monthly income

The total income earned each month plays a major role in deciding the loan mount an applicant is eligible for. The repayment process of a loan requires the borrower to pay back a certain amount to the bank each month. This amount is called EMI. All banks try to ensure that the EMI payment does not exceed more than 60 percent of the individual’s salary.

2. Tenure

The tenure of the loan is the number of years one plans to take to repay the loan amount borrowed. A longer tenure will lead to a lower EMI amount each month while a shorter tenure ensures that one can pay off the loan quickly. The home loan eligibility calculator ensures that based on the tenure, the loan amount they are eligible for does not put too much burden on the borrower during the repayment process.

3. Interest rate

The interest rate is a factor that the applicant must choose with care. The interest charged affects the amount the applicant has to repay the bank each month as EMI. An applicant must select a reasonable interest rate which is affordable and also agreeable for the bank.

If the loan amount you are eligible for is lesser than the amount you require, you ca still take steps to achieve the loan amount you want. Banks do not only look at the amount provided by the housing loan eligibility calculator when considering one’s loan application. If the applicant has a high credit score, they can convince the bank to accept their loan application. But if the credit score is lower, one must reduce the number of credit cards they own, try to pay their bills on time and repay any pending loans immediately. This will boost your credit score and help you get the loan amount easily. Hence it is crucial for one to make use of the housing loan eligibility calculator before applying for a home loan.

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 calculators that help to make the best decision.

Total Views: 68Word Count: 499See All articles From Author

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