123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Factors That Determine One's Home Loan Eligibility

By Author: Aishwarya Mahurkar
Total Articles: 291

Purchasing a home requires strategic thinking and precision planning. As an applicant one would need to consider all the different influential factors that take place in the processing of a home loan. This also includes the list of factors that determine the approval for a home loan, which includes the home loan eligibility. These factors determine the eligibility criteria for any home loan application include:

Assessment of property

Property plays an important role in the eligibility criteria of a loan. Since the value of the property influences the value of the loan, one would need to assess the value of the property before the loan application. The interest rates and EMI’s of a loan are affected by this factor alone. On selecting the ideal property, the loan applicant will need asses the property value and determine the ideal repayment plan, which include the interest rates, repayment tenure and even the principle amount.


Income plays an important factor in determining the home loan eligibility of an applicant. An applicant’s income determines how much one can set aside to repay the loan or EMI’s. It also determines whether the applicant will be able to manage the repayment within the given time frame. It is one of the main factors that are considered by any financial institute. Therefore, higher the income, higher is the interest rates and EMI’s.

Profession or nature of business

Apart from the income, one’s place of employment is also taken into consideration, as the source of income. If the applicant is an employment field that follows a proper corporate structure or banks, finance or private limited companies your loan eligibility will be high. Employment fields like finance, medical and engineering will be considerably higher as compared to media based. The home loan eligibility is also applicable to applicants who are self-employed, as their come would be based on their functioning of the business or venture they own.

Repayment tenure

Home loans come with a repayment tenure that lasts between 15 years to 30 years. One can opt for a repayment tenure that is most convenient to them. However the applicant must remember, that once they apply for this loan, it is difficult to apply for any additional loans. A longer repayment tenure would increase the home loan eligibility, for the same income value.

Co - applicant

Most home loans are designed for the features of a single individual. However, if the financial institute undermines the applicant’s profile, one can always opt for a joint application for the loan. A joint income increases the repayment factor by twofold, thus ensuring a higher chance for the loan eligibility.

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 that help to make the best decision.

Total Views: 146Word Count: 486See All articles From Author

Investing / Finance Articles

1. Guide To Getting A Fund With Bad Credit- What Options You Have?
Author: longtermpaydayloansontario

2. A Simple Mindset Could Dramatically Improve Your Trading Right Away
Author: Garry Singh

3. Know The Reasons Why You Need To Use A Sip Calculator To Make Better Investments
Author: Vivaan Ahuja

4. Staggering Graph Designs To Beat The Market
Author: Garry Singh

5. The World’s First Blockchain-assets Backed By Diamonds
Author: Al Kasir Portal

6. Enjoying Cash Loans Despite Bad Credit - No Checking Account Loans
Author: nocheckingaccountloans

7. Opportunities With Shares Online Trading
Author: Blusignal Systems

8. The Most Powerful Currency Of 2018? Here We Go Through The Analysis, Forecast, And Poll
Author: Garry Singh

9. Establish An Efficient Payroll Accounting With Quickbooks Technical Support
Author: Olivia Wales

10. A Leaking Faucet And Trading (artistic Thoughts On Trading)
Author: Garry Singh

11. Asset Reconstruction - The Ideal Way To Curb Npas
Author: Chetan Rathod

12. Physician Loans Nashville
Author: nick clark

13. 3 Best Steps To Entering Forex Trade
Author: Adam Bert

14. The 5 Factors You Need To Consider When Selecting A Mutual Fund
Author: Vivaan Ahuja

15. Infinite Potentiality In Trading – A Short Exposition
Author: Garry Singh

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: