Today applying for a Home Loan is made simpler with online application process. This is why there are many who simply go ahead with the procedure when they feel they are in a position to apply for loan, fueled by their need or desire to have a home of their own. However, before one actually makes the application, one should do some research regarding the eligibility criteria for the application or else they stand a chance of getting rejected. And too many rejected applications might make the prospective creditors in the future wary of sanctioning your loans. Thankfully, now there is Home Loan eligibility calculator which will immediately calculate how much loan would could get based on their current income.
There are several factors which may affect Home Loan eligibility and one of the foremost is the income on which the EMIs would depend. A Home Loan EMI calculator is an online tool provided by many bank or NBFC websites like Bajaj Finserv which have great Home Loan options. It make it possible for someone to calculate whether they would be in a position of repaying the loan based on their current income, in case they choose to go through with it. Some information has to be fed in the calculator like one date of birth, monthly income, any additional source of income, the tenure for which one would like to take the loan and the Home Loan interest rates for the respective bank or NBFC. The calculator will immediately show the monthly EMI one would have to pay each month and also a detailed breakup of the principal amount and the interest that one would have to pay till the end of the tenure. That would help someone to understand whether they would be able to pay the EMIs and then make the application, rather than applying first and then backing out or be rejected.
While applying for the loan, the personal information provided by the applicant has to be accurate so as to avoid rejection. Although the application can be made online, some documents have to be provided at the last stage for verification, and once they are through, the loan can be disbursed in three to four days after the payment of the processing fees. Some of the documents required for Home Loan that have to be provided by the applicant are ID proof, address proof, income proof like salary slips, income tax return statement of the last three consecutive years, and any other document that the creditor would require. If these documents are not in place, or they have incorrect information the application would be rejected in the verification stage and that would not be a good patch on one’s history. Hence, the correct procedure would be to start organizing the documents as soon as one considers applying for a loan to prevent any last minute hassle.
Thanks to the ease in application for Home Loan, today it has become possible for many to fulfill their dreams of having a property of their own. However, apart from the above mentioned factors, one also has to have a strong credit rating to be eligible for the loan. The age of the person is a major criteria and it becomes a bit difficult to get a loan sanctioned after the age of 50- even if one does get approved, then the tenure is much shorter and the interest rates higher. A good rating would mean the application has no outstanding loans, there have been no or negligible delay in making credit card repayments, all the bills are paid on time, and there are no major financial liabilities.
A credit score of above 700 is a good one, and if one has any plans to apply for Home Loans in future, they should start working on their score from any early stage, avoiding delay in payments. Apartment from that, the applicant must also have a certain amount for down payment of the property as the banks and NBFCs mostly sanction about 80% of the loan, and one has to submit a copy of the initial agreement with the developer and booking documents of the property while making the application. If all the aspects are in place, then the loan is granted by the creditor.