Like every other loan, a home loan also comes with some basic eligibility, without meeting which you are not allowed to get a loan. A bank must maintain specific parameters to be eligible for the loan. In this regard, here are a few ultimate factors you must consider before applying for a loan.
Your credit score is the most important behind getting a home loan approved. On average, this score should be 750+, along with a good loan repayment history. The lender or bank to lend you money consider these two aspects of assessing your financial credibility and capability. Hence, it would be best if you did not consider your credit score before applying for a home loan.
Existing Debt Obligation
If you have several existing debt obligations, it will negatively affect your loan eligibility. For example, if you have too many dues, charges and EMIs to pay, you might not get additional money to repay the loan. So this is one of the ultimate factors that affect your home eligibility.
Your Monthly Income
After taking a home loan, you are supposed to repay monthly through EMIs. The income range or criteria is to differ from bank to bank. So your bank is supposed to check your monthly income properly as essential loan eligibility. On the other hand, in accordance with your area, your income range should differ. Once you meet the monthly income eligibility, you can get a loan as per your preference.
Your Employment Status
Like your monthly income range, your employment status is another important aspect. Working for an MNC or a reputed co company deems you more trustworthy and reliable as a borrower. On the other hand, if you are running a business, the lender is supposed to sanction a small section of your loan. A business is known to have lesser precedence than a reputed job.
Your Age
Age is another essential factor in deciding your eligibility to get your home loan approved by the bank. The lender is to explore how many years you have with you as a working professional.
If you are young and a working professional, you will have a higher chance of getting a home loan from a bank. It would be better for you to use a home loan eligibility calculator
Your Property Details
Last but not least, the lender must also explore the property details for which you are applying for the loan in the first place. This property is a security based on which you are getting the loan. So, it is always better to choose a suitable property.
You should find such a property whose value is increased over the years. You need to make 20% of the property cost as a down payment; the rest is supposed to be given to you by the bank.
So these are factors you must not forget to consider while looking for a home loan per your preference and demands. You can consider a loan agent to know more about the various aspects of a loan.