How To Get The Instant Approval On Home Loans
Awaiting A Quick Approval For Your Home Loan? Well, Here Are The Ways
Home Loans For most people aspiring to own a home, applying for a home loan becomes necessary. Taking a home loan makes it easier to meet the expenses associated with purchasing a house.
Home loan applications are sanctioned after careful consideration by the concerned authorities.
A small miss or any minor error on the part of the borrower can result in the rejection of a home loan application. Turning down a home loan application can adversely affect the borrower’s credit performance and can also alert other lenders.
7 Useful Tips For A Swift Approval of A Home Loan
Understand Your Financial Condition
Consider your financial situation very carefully to determine if you have the financial resources to reimburse the loan amount comfortably. One of the primary requisites of securing a home loan is to pay your EMIs timely.
Many lenders have a fixed salary requirement, which differs from city to city. For instance, if you live in Mumbai or Delhi, the salary requirement is capped at Rs. 50,000 per month.
However, if you are based out of Bangalore or Pune, the salary amount is stipulated at Rs. 45,000 per month. Thus, you must know your repayment ability to make sure your request for a home loan gets approved.
Opt For A Higher Down-payment
Make it a target to pay at least 20% of the amount as a down payment once you know the property’s price that you wish to purchase.
The lesser the amount of money loaned, the lesser you need to pay back. Thus, it becomes possible for you to incur a lower housing loan interest rate. This helps to create a positive image of the borrower before the lender as someone who poses a lower threat to their finances.
Regulate Your Credit Score
You can boost your home loan eligibility in several ways. Most lenders will examine your CIBIL score before sanctioning your home loan. Your CIBIL score looks at how well you perform in investments, your loan history, and your capability to repay new loans.
To maintain a robust CIBIL score for availing of a home loan, you must have a neat financial record.
Ensure your credit cards do not remain unpaid, repay all your outstanding debts. Submitting many applications for home loans all at one time has high chances of getting rejected. Select your lender cautiously and submit just one application if you are sure of it being sanctioned.
Use The Co-applicant Facility
If possible, try to get your spouse or parent to be a co-applicant for your home loan. This can remarkably increase the chances of getting your application sanctioned if your co-applicant has a fairly decent income. Lenders let you club the total income of your co-applicant while applying for a home loan. This suggests that you are reasonably capable of repaying their loan on time, even if your income alone does not allow you to qualify as a suitable borrower.
Study The Concerned Documents Carefully
One of the common reasons why home loan applications get rejected is the incorrect filling up of the application forms. You should be extra careful while filling up your home loan application form. Scrutinizing the form before filling it will help you find out the hidden clauses in the contract if any. Do not make mistakes with your salary details or account numbers.
Review Errors In Your Credit Report
Any error or disparity in your credit report can hinder your home loan application procedure. Thus, it is prudent to examine your credit report and correct the mistakes before applying for a home loan.
In case any mistake arises from a credit that you have bought from a financial institution, bring it to the notice of the concerned authorities. You can also reach out to the CIBIL to get these discrepancies removed or cross-check with the lenders if there are faults on their part.
Be Swift In Responding To Your Lender
Be sure to reply to your lender’s requests as early as possible. A sluggish response on your part will further put off the loan disbursal and can even cause your lender to reject your home loan application. Refusal of loan grants can cause a huge problem if you have made an investment in advance towards buying your new property.
While your home loan application is still being processed, do not hold back any information that is relevant to your application. Make sure your details in your application are authentic to avoid facing rejection for your home loan application.
If you are not sure of your capability to pay the EMIs or your home loan eligibility, feel free to use a Home Loan EMI Calculator or a Home Loan Eligibility Calculator to ensure fair chances of your application being accepted.