Proper financial planning is highly essential to ensure proper fund management. Many loans can be available from financial institutions to satisfy your needs, including two-wheeler loans, home loans, loans against security, and personal loans. Home loans are one of the most common ways used to purchase a new house. There are many factors which the borrower must keep in mind before availing such loans. These include repayment tenures, EMI amount, and interest rates.
Some home loans are secured, and hence their lenders have a lot of specifications. However, many lenders in the market have their own set of requirements and criteria to be fulfilled. There is also a wide range of home loans that are offered to home buyers by financial institutions. Now, with the home loan EMI calculator, applying for home loans is more straightforward. So, let’s get you started on the eligibility criteria and documents essential to avail of home loans.
Eligibility Criteria and Documents to Avail Home Loans
The home loan eligibility criteria that are required to be fulfilled for all self-employed individuals and salaried employees can be listed as under:
The borrower must be at least 21 years old while applying for the loan, and not more than 60-65 (retirement age) by the time of loan maturity.
Secondly, an appropriate CIBIL is very significant for approving home loans. The score must be 700 or above.
After the borrower has checked the eligibility criteria, the next step is preparing all the documents required to avail a home loan. Proper documentation is essential to ensure quick approval of the loan amount. Below listed is a complete checklist of home loan documents you will need to avail it-
PAN is Mandatory
You can submit age proof using a birth certificate, driving license, passport or a PAN Card.
Next, you will need identity proof which has your photo. You can use your Aadhar card, voter ID, driving license or passport.
A document verifying your address proof is required. This can be your property documents, utility bills or property tax receipts.
Details of Employment and Financial Documentation
If your current employment is just less than one year, you will be required to submit an employment appointment letter.
Other than that, the following documents are to be submitted:
Your bank statement of the last six months, salary slip of the previous three months, or an identified copy of Form 16.
For this, you can submit your salary slip for the past 3 months as well as your bank statements for the last six months.
You have to submit all the property documents as required by the lender.
How to Improve Chances of Availing Home Loans?
Sometimes, you can have all the adequate documents ready, but your home loan can still be rejected. Here are a few ways that can help you improve the chances of approving your home loan:
Usually, when you opt for home loans that have longer tenures, your loan eligibility improves. This is primarily because of the lower payment of EMIs. This enables you to make timely payments and gives you the advantage of longer duration for repayment purposes.
A crucial element for the approval or rejection of your home loan is your CIBIL Score. To appear a sound and reliable borrower, you must have a score of 700 or above. It also helps you in negotiating low-interest rates with the lenders.
Show Other Sources of Income
To improve your eligibility, you can show additional sources of income, if any. . This could be anything, be it a part-time business or any income generated from rents.
Add a Co-Applicant
If you want to borrow higher amounts, you can always add a co-applicant who is an earning family member having a g credit score. This can also spike up your EMI affordability along with increased loan amount eligibility.
Since taking a home loan is a long-term decision, the borrower must always have a proper financial plan before availing it. There are many different financial institutions offering home loans. The borrower must always check the history and background of the lender before availing of such loans. When looking for home loans or making renovations, you need to keep aside all your financial worries and choose the best home loans starting at 7.99% p.a. The best lenders will offer you attractive interest rates as well as flexible repayment tenures. Now, with its home loan EMI calculator, you can even get the correct value of the amounts you need to pay at regular intervals and ensure the best loan facilities. For more information, contact us.