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16 JUNE, 2022
The homebuying process is a long one that requires a lot of planning and time. What can make this process easier and more efficient is doing your research and knowing where you stand. For instance, before you apply for a home loan, it’s crucial that you understand your home loan eligibility. By being aware of your home loan eligibility, you reduce the chances of your home loan application getting rejected and can undertake better financial planning. But what exactly is your home loan eligibility and how can you calculate it yourself? Let’s find out.
Calculating home loan eligibility
Your home loan eligibility is essentially the amount and terms of the loan that you are eligible for based on your financial profile. Lenders take into account factors that allow them to assess your repayment capacity and creditworthiness to know your home loan eligibility. These factors include your income, age, current debt, employment and education history, city of residence, loan tenure, credit score, etc.
While the process of determining your eligibility may seem complex, you can simply use Kotak’s home loan eligibility calculator to determine your home loan eligibility in a few minutes. This is a free online tool that is designed to help you assess your home loan eligibility so that you can have a seamless homebuying journey. Once you know your eligibility, you know how much home loan you can be approved for. This will allow you to ascertain your homebuying budget and will make the process of house hunting more streamlined.
It will also help you apply for home loan in a way where the chances of application rejection are minimal. Using Kotak’s home loan eligibility calculator in your homebuying process is as important as knowing the recipe for a dish before you begin cooking it.
How to use Kotak’s home loan eligibility calculator
Here’s what you need to select or input to calculate your home loan eligibility using Kotak’s home loan eligibility calculator:
After you have added all this information, you will get a number as a result. This number is essentially the estimate for the amount of home loan that you are eligible for based on your financial profile. It’s essential to remember that this is just an estimate and that the actual home loan amount you will be approved for can be higher or lower. That’s because when you apply for a home loan, all the information that you enter in the home loan eligibility calculator will be asked for in a more elaborate manner. So, for instance, if you are a salaried person but also have additional freelance income, that would be added to your total income and your home loan eligibility would be increased accordingly. Hence, the home loan eligibility calculator is just a helpful starting point.
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