If you are looking forward to buying your dream house, you may consider availing a home loan that fulfills all your requirements. Factors such as low-interest rates, flexible repayment options, minimal formalities, and quick disbursal decide the viability of a home loan. It is important that you study all the features of your home loan before settling for it. Moreover, before applying for a home loan you should check your home loan eligibility with the help of an online home loan eligibility calculator. This will give you a better understanding as to whether or not to avail a home loan from that specific lender. Some of the major factors that decide your home loan eligibility are mentioned below:
Credit score
Since your credit score determines your creditworthiness, it plays a crucial role in deciding your home loan eligibility. A high credit score will reflect your high repayment capacity and boost your home loan eligibility. Therefore, it is essential that you maintain a good credit history. You can improve your credit score by repaying your outstanding debts and making timely payments of your other EMIs. Also, check your credit score thoroughly and call for a dispute if you find any errors in your credit score.
Annual income
Financial institutions check your annual income to determine the maximum home loan amount that you can avail. Therefore, you should make sure that you have regular income, steady finances, and the possibility of better earnings in the future. If you have any additional sources of income, you should provide the exact details regarding the same. Also, maintain a record of your salary components that are variable in nature. All these things will help you boost your home loan eligibility.
Your age
Your home loan tenure is largely dependent on your age. The higher your work experience, the better are your chances of home loan approval. Since your home loan tenure can only go up to your retirement age, lenders make a note of your age before approving the loan application.
Age of the property
The maximum home loan eligibility will depend upon the age and value of your property. Most lenders have a cap on the maximum age of the building. So, if you are purchasing a property on resale, the probability of getting a higher loan tenure is very low. This, in turn, reduces the loan eligibility.
Amenities agreement
Some buyers enter into amenities agreement to minimize the payment of stamp duty that is applicable on the transfer of property. However, such transactions directly impact the loan amount lenders are willing to provide.
It is to be noted that the eligibility criteria for home loans may differ from one lender to another. Therefore, it is essential that you check your eligibility before applying for a home loan
The basic eligibility criteria for home loans are mentioned below:
- You must be an Indian citizen
- You must be a salaried individual with at least 3 years of work experience.
- Salaried individuals between the age of 23 to 62 are eligible for a Home Loan.
- The home loan amount you can apply for ranges from 10lakhs to 3.5 Crore.
You can calculate your home loan eligibility with the help of Home Loan Calculator by following the below-mentioned steps:
- Step 1: Mention if you have other sources of monthly income
- Step2: Enter the amount of current EMIs or obligations
- Step 3: Mention your city of residence
- Step 4: Enter your date of birth
- Step 5: Enter your net monthly salary
- Step 6: Select your loan tenure
Click on ‘Check Your Eligibility’ to calculate your home loan eligibility. The home loan amount and the loan tenure will be mentioned because of the calculation.
Lastly, it is important that you understand the terms and conditions of your home loan carefully before availing it.
