Getting a home loan is necessary for most aspiring homeowners as it will help them purchase a property. Nevertheless, a hefty amount of money in home loans makes it difficult to get approved. Many considerations, such as your history of no bad debts, or string repayment history, are important for determining your home loan eligibility.
So, one single mistake or omission can result in an adverse impact on your home loan application. In most cases, it gets rejected, whereas in other cases, it may take a lot of time to get the approval. If rejected, your credit score will be severely affected, and it will be considered a red flag for other lenders. So, there are a few things you need to keep in mind for getting a home loan quickly and efficiently.
Check them below.
1. Understand Your Financial Condition
You must check whether you’re financially stable to repay the loan conveniently or not. One of the most crucial requirements for availing home loans is to pay your EMIs on the scheduled date of every month. Moreover, several lenders have a minimum salary requirement, depending on the city and the amount of loan applied for.
To ensure your home loan application approval, you must know your repayment ability.
2. Try to Pay a Higher Amount as Down Payment
If you know the market value or cost of the property that you want to buy anytime soon, then try to pay a minimum of 20% of the value as a down payment. If you borrow a lesser amount of money for a home loan, you’ll have to reimburse a lesser amount of money. A higher amount as a down payment may also help you get a lower interest rate for your home loan as you’ll pose a low risk to their financial losses.
3. Maintain a Good CIBIL/Credit Score
Today, you can opt for multiple ways to boost your home loan eligibility. As a general rule, the lender will check your CIBIL or credit score before the home loan approval. This score indicates how disciplined and well-organized you’re with your financial transactions, investments, and repayment. It also tells whether you’ll be able to repay any new loan or not.
So, to maintain a good credit or CIBIL score, you must ensure a clean financial record. You have to make sure the credit cards are paid on time and clear any outstanding dues. Moreover, submitting numerous home loan applications to multiple lenders will affect your CIBIL score if they get rejected. So, it’s vital to choose the lender carefully and ensure to apply only when you are confirmed to get its approval.
4. Take Benefit of the Co-Applicant Feature
You can quickly get your home loan approved if you introduce your spouse or parent as your co-applicant. The chances to get instant approval will significantly increase if your co-applicant is a salaried individual or earns a sizable income.
Moreover, the bank will enable you to add both net incomes during the home loan application process. It will boost your overall ability to repay the loan and help you get quick approval.
5. Fill the Application Form and Submit Documents Properly
One of the primary reasons for home loan rejection is incorrect and misleading information given on the application form. So, you must be attentive and careful while filling out your home loan application form. Revising the form may also help you check whether any hidden clauses could be a potential issue in the future. Also, try not to make errors with your salary details and bank account number.
So, you must provide all the information relevant to your home loan application without any error or omission to ensure its quick approval. You must be honest and transparent about the details and wait for their response. That’s it. Good luck with your application, and let your dream home become a reality soon.