A home is a reflection of the self. Everyone wants their own home with a lot of financial stability and security. This is an important aspect. A home loan or house repair loan is indeed the best way to arrange a huge sum of money at once. More than 80% of individuals rely on a home loan to buy their homes. This is a good idea because you can pay the entire loan in small and easy EMI every month. However, since a home loan is a high-value loan that exceeds lakhs, the financial institutions are very careful when it comes to eligibility criteria.
Below mentioned are some of the eligibility that needs to be fulfilled by every homeowner in order to get a home loan -
Get a good credit score: You will need a credit score of 750 and more in order to get a home loan. This is pretty much evident and you need to try out every possibility to get a good credit score if you are planning for a home loan. A home loan involves a lot of risks, and a good credit score is the best way to overcome it.
Find an amazing property: A reputed builder and a good location property make the home loan process easier. This means even if you default the loan provider can easily recover the amount from a good property. To increase your eligibility, make sure you get a good property.
Arrange downpayment: Downpayment is essential. Your loan provider will not be paying your down payment. If you are able to arrange a good amount of down payment that speaks about your financial stability and health. This will increase your chances or probability to get a home loan.
High income: Individuals with high income are always an asset for the loan provider. If you are earning really well, there shouldn't be any issues regarding getting a home loan. You will get it easily.
Good debt to income ratio: A home loan is a burden as the EMI will also be a good amount of money. So, your debt-to-income ratio should be less than 30% in order to get a home loan. If you are already paying half of your income in debt, you will face rejection.
Job stability: Stability in employment means a secured source of earning which means you can pay your EMI on time. This gives you approval.
Wrapping up
Whether you are looking out for a home loan or a house repair loan, you need to meet the above-mentioned eligibility criteria. The screening eligibility process of a home loan will be a strict one owing to the number of funds involved.
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