Purchasing a house is one of the most significant accomplishments in one’s life.
However, applying for a home loan requires thorough research and preparation by the borrower as one could be forced to minimize the monthly expenses or maintain job stability to pay the EMIs on time.
In addition to it, one must fulfil various eligibility conditions of the lender and start saving money in advance to avoid any mishap in the future.
Scroll down to know about the six tips for getting your home mortgage loan approved.
Maintain job stability
For obtaining a home Mortgage loan smoothly, the borrower must establish a steady source of income, which signifies their ability to pay the monthly instalments without any default. Luckily, if you are still early in your career and have a low salary, you can do a joint borrower sole proprietor mortgage to boost your income.
While performing verification formalities, the lender tends to do comprehensive research on the candidate’s current job profile, previous work experience, monthly income, and nature of employment to ensure their repayment capacity and integrity.
Hence, one should prove themselves as a worthy candidate with a stable income for getting loan approval.
Keep a healthy CIBIL score
Financial institutions lay a great deal of emphasis on an individual’s credit score while offering home mortgage loans as it validates their debt-handling and repayment ability. Thus, one must maintain a spotless credit history by paying credit card bills or previous loan EMIs fully and on time.
Additionally, one should also check their credit report regularly and inform the agencies about any errors to improve the credit score. A CIBIL score of 750 or above is considered excellent in the financial sphere, and timely payment of outstanding dues and a regular assessment of credit report will surely help acquire a home loan easily.
Ready the documents
Keeping all the required documents updated, whether related to the property or the borrower’s income, is essential for obtaining a home mortgage loan without any hassle. The lenders check and verify all the documents intricately, and one should have them ready for obtaining quick approval.
Assess your EMI affordability
A home loan is a secured form of credit in which the property is pledged as collateral until the borrowed amount is fully repaid to the lender.
A loan is repaid through monthly instalments over a fixed tenure, and one should compute the EMI amount as per the mortgage loan interest beforehand to avoid any confusion later.
One should evaluate the monthly income before applying for a home loan to ensure that the fixed monthly expenses do not exceed 50% of the salary because the bank usually does not approve the loan request in such cases.
Start saving money
One should be financially stable while applying for a home loan because the borrowers must submit 20% of the purchase price of the property from their savings. Hence, one should try and save the money in advance for making the down payment.
Avoid multiple debts
One should avoid taking another credit along with the home mortgage loan as it will create a pile of debts and land them in a financial mess. It could also impact their credit score negatively, and the lender shall reject the loan request. Hence, one should settle all previous debts before applying for the loan.