The basic necessities of our lives include food to eat, clothes to wear and a roof above our head. While food and clothes are manageable, for majority of the population buying a house can be a bridge too far. Reasons, increasing property cost and the difficulty to acquire loans. Plus the last thing you want is not being an eligible candidate to apply for your home loan.
Finding the perfect home loan may seem like an impossible task at times. That’s why it’s important to use Joust home loan auction tool, which aims to empower the consumer by giving them the choice to compare and select the perfect loan for their needs.
Here are 4 major factors that might impact the Home Loan eligibility.
1.Your CIBIL/ Credit score
Credit information Bureau India Limited (CIBIL) stores information regarding your credit and loan records. A CIBIL or credit score is a rating based on how well you have been able to repay your loans and credit card bills. It takes years to build a reputent credit score. Banks judge your ability to pay home loan by exploring your past loan payments. Make sure you pay all your EMI’s and repay other small loans on time to develop a good credit score.
2. Income
How much you can borrow depends on how much you earn. Banks might discharge your application for home loan if they discover your annual income being way less than your desired loan amount. While a lot cannot be done in this case, it is advisable to have a history of steady income source. Have your salary slips in place and be constant with your job. Too much job shifting might not help to receive a green signal from the banks.
3. Credit History
As mentioned earlier building a good credit score might take years. If you fear repayments and hesitate to draw loans, you might not have a credit history all together, which is bad. If you have been proudly sitting there thinking you have never had the obligation to borrow money, you might just have to rethink. The thing with banks is if you haven’t had a history of borrowed credit, banks would hesitate to write you a hefty sum for your home loan. Take loans and do repayments, build a credible credit score and drawing a home loan might just get a little easy.
4. Age
Yes, age. It’s pretty straight forward. Banks look at loan payment capacity. A 30 year old individual has a longer repayment capacity as opposed to a 50 year old. Hence, banks might be more accepting if you are younger and promising. From increase in income to higher life expectancy everything is in your favour. If you are a young individual your chances of getting a home loan is far better. Along with credit score and credit history age become one of the major factors for your home loan eligibility.
In the end, you have to be persistent with your loan history. Be careful with your credit card payments and job options. Work hard towards a better income group. Have all your papers including salary slips and portfolio in place. With low interest rate and high credibility do a background check of your alleged bank. Choose your bank wisely.
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Founder Dinis Guarda
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