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5 Smart Tips To Boost Your Home Loan Eligibility In 2021
How to improve your chances of home loan eligibility in 2021? It’s easy. All you need is a quick sneak peek into five smart ways to do that. Here we go.
Checking your housing loan eligibility criteria is easy. It’s the first thing you need to do before everything else. Every bank and housing finance company expects its customers to qualify for the predefined eligibility criteria. People who fail to meet their eligibility conditions may have to wait longer for their own homes.
The good news is that you can increase your loan eligibility anytime. As a borrower, there is always a chance to improve your eligibility and enjoy a first try approval. Here are a few cool ways to improve your loan eligibility right away.
1.Pay Off Your Existing Loans
It’s always better to clear off your existing loans to get your first house loan sanctioned. Ensure you have no outstanding loans or debts when you plan to apply for a home loan online. Pay off your personal or car loans or any credit card bills before you start the loan application process. Retain ...
... a healthy habit of repaying your entire credit card bill on a timely basis.
Borrowers who have a low debt profile are likely to get quick loan approval for their dream home.
2.Work On Your CIBIL Score
Every single lender will look for your credit score before moving ahead with other loan eligibility conditions. You need to have a passing score of 750 to acquire a quick loan. Your loan application may get rejected if you have a credit score lower than 750. So, check your credit score before applying for a house loan.
The simple way to enhance your credit profile is by staying regular on your outstanding payments. Whether it is a loan or any unsettled credit card bills, you need to pay them on time.
Here are some ways to better your credit score this year:
● Pay your EMIs and credit card bills on time.
● Work to retain a low CUR (credit utilisation ratio) of around 20-30 per cent of your card’s overall spending limit.
● Try to stay out of defaults and loan settlements, as these may ruin your credit score.
● The age of your credit line matters as well. Having a credit card or long-term loan reflects a positive story about your timely payments.
● Never look for too many credit products at a time. Each new application goes through a credit score check that reduces your CIBIL score.
● Also, look out for any possible errors in your credit report as it may be a reason for a low credit profile.
NOTE: Having good credit repayment behaviour can further your loan eligibility to a great extent.
3.Go For A Joint Loan
Your spouses are the best choice for a joint loan. It increases the chances of eligibility and even comes with extra perks for you. If your spouse agrees to co-borrow the house loan and shares the repayment, then both of you can enjoy the tax benefits under the new tax laws.
Go for a joint loan to better your chances of house loan eligibility. Applying for a loan with an employed applicant having a monthly income source stands better for your loan approval. The lender looks for the income of both applicants when you apply for a joint loan online. It shall also help you receive a higher loan amount.
4.Display Extra Income Sources
Show off your extra sources of income to enhance your chances of house loan eligibility. Anything like rental income or business income shall work out in this scenario. If you have an extra house, rent it out wisely, as it will cover your monthly cash inflows.
You may also have other income sources like fixed deposits or mutual fund dividends. These are good income sources and will help you get quick loan approval.
5.Choose A Long Term Loan
House loans are usually available for a tenure of up to 25 years. Choosing a long tenure loan helps you save a lot of interest money as well. However, it tells the lender that you have plenty of time to repay the loan amount.
Long-term loans mean lower monthly EMIs and show your ability to repay the loan on time. It reduces the risk for a lender and helps you get a faster loan sanction.
House loan eligibility is a crucial factor to avail of a loan for your house. Follow these tips religiously to walk the first step in your dream home this year. We wish you luck with your house loan approval.
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