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Real Estate Experts Give You These Tips to Get a Home Loan Application Approved Almost Every Time!
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No one wants their home loan application to be rejected, but unfortunately, it happens all too often. If you're looking to buy a new home, make sure you follow these tips from real estate experts to help increase your chances of having your application approved. By taking the time to prepare properly and showcase your financial stability, you'll give yourself the best chance of getting the home loan you need.
Tips by experts to get a home loan application approved easily
1. Use a home loan eligibility calculator
The first step to increasing your chances of getting a home loan approved is to calculate your housing loan eligibility. This will give you an idea of the maximum loan amount you can qualify for and help you narrow down your property search within your budget. For this, you can use an online home loan eligibility calculator to get an estimate.
2. Clear outstanding loans
A key factor that home loan lenders look at when assessing your home loan application is your credit history and repayment capacity. If you have any outstanding loans, it is advisable to clear them before applying for a home loan as this will improve your chances of getting the loan approved.
3. Apply for a joint home loan
A joint home loan application has more chances of getting approved if your co-applicant’s financial profile is strong. When you apply for a home loan jointly with your spouse or any other earning family member, your home loan eligibility increases. Lenders usually prefer joint home loans. Since there are two incomes, the chances of repayment are also higher. Also, with a joint home loan, you can be eligible for a higher loan amount as the repayment capacity is also higher.
4. Maintain a good credit score
Lenders will check your CIBIL score to assess your creditworthiness before approving your loan. There is no minimum score for a home loan but 750 and above is considered a good one for home loan approval. Therefore, it is important to maintain a good credit score by making timely payments and keeping your debt levels low.
4. Save for a higher down payment
The size of your down payment has a direct impact on your home loan eligibility and interest rate. Lenders typically prefer to see a higher down payment, as it indicates that you are less likely to default on the loan. Therefore, it is always advisable to pay at least 20% of the property cost as down payment to enjoy lower interest rates and better home loan terms. In addition, a higher down payment can help to lower your interest rate, saving you money over the tenure of the loan.
5. Double check your documents
Lenders will require a lot of documentation from you in order to approve your loan. Make sure you have everything they need, including payslips, tax returns, and financial statements. Here is the list of standard documents required for most home loans:
Applying for a home loan can be a lengthy process but following these simple tips will help ensure your application is approved. By being organised and prepared ahead of time, you can minimise the chances of any delays or issues along the way.
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