Historic low home loan interest rates are now available. In addition, the pandemic has highlighted the importance to have a home that is spacious as well as has sufficient amenities. This will allow you to be at peace and enjoy your time with loved ones. Here are some factors that could impact your eligibility for a loan. It is easier to prepare for these factors upfront and get your application approved quicker.
Credit Score: This is the first thing lenders pay attention to. This tells lenders whether the borrower has a track record of paying back her loans on time, and is a low credit risk. A good credit score is likely to be achieved if you have used credit in the past, whether it’s personal loans, auto loans or credit card, and have paid them back on time. However, if your past repayment history is poor or late it will likely have an impact on your credit score. Lenders generally look for credit scores of around 750. You might consider applying to a credit bureau such as CIBIL to find out where you stand.
Income: If you are employed by a large, public limited company you are more likely to get finance quickly. You must prove that your business can provide you with stable income if you are self-employed. Banks might want to see salary slips for six-months and, for businesspeople, Income Tax Returns for three year for salaried workers. All of these should be in order. They may be required to produce bank statements for at minimum half a year.
Serviceability of a loan: This is dependent on your income and any other financial obligations you may have. For example, EMIs for personal loans or car loans. The banks generally want your EMIs to not exceed 40% of your monthly earnings.
Age: How able the borrower is to repay a loan will also be affected by her age. For example, if a 30-year-old borrows a home loan, it is more likely that she will take longer to repay the loan and earn it.
Age of the property Banks are more likely to finance older properties than they are to finance them.
If a couple is applying as co-applicants, it will be much easier to obtain a mortgage. The bank would then sum up both the incomes and determine the ability to service the loan.
Bank offers a variety of home loans that are affordable and flexible to meet the needs of all home buyers. Axis Lender has a variety of products to choose from. You will find the best home loan interest rate, extended loan tenures, and other benefits online like EMI waivers.
