Property is that sort of asset that provides you with a variety of financial advantages. The banking sector provides profitable and beneficial loan opportunities if you are thinking of purchasing property. If you need money right away or don’t want to spend all your funds, then house loan is a wonderful option. Owning a home is a dream to everybody and banks help in making dream come true by offering convenient monthly payments and the ability to select the repayment tenure as per your comfort. However, look over these suggestions before you start the house loan application process as they might make the procedure easier and make loan payments simpler.
- Check Your Credit Score: The basis for a smooth home loan application process is a credit score. Your history of paying your bills for credit card and EMI balances on time strongly correlates to your credit score. Credit score is essentially the credit history of the loan from many sources, such banks, NBFCs, or housing finance companies (HFCs). Credit score is included in the credit information report. These credit reports are created and maintained by a reliable credit bureau. Banks and lenders receive the updated data from the credit bureaus whenever any kind of inquiry is made. One can anticipate a higher likelihood of loan approval and, as a bonus, the highest return on investment on the home loan with a higher credit score.
- Think about your budget, down payment, and EMI: You need to determine your home-buying budget, the amount of the down payment you can afford, and the total amount of the loan. If your income appears to be sufficient, you can typically obtain a house loan for 80% of the value of the property. Determine the EMI range that you are comfortable with before choosing the loan’s term. Using EMI calculators, you can experiment with different possibilities. If your salary is insufficient, you can consider becoming a co-borrower with your parents or spouse.
- Required Documents: Before applying for any mortgage loan be handy with the documents required. The required documents are mentioned below:
- Income Tax Returns or Form 16 for the most recent two to three years, ensuring that all taxes have been submitted.
- PAN Card, the lender would do a PAN Verification to determine its legitimacy.
- Aadhar Card: To confirm your identification, the bank will also do Aadhar verification.
- Bank statements of the account where your income and expenses are shown for the last 6-12 months and make sure that you are maintaining the reasonable amount from at least past 6 months.
- Salary slips of last 3 months is required if you are a salaried person and a duly signed application form with picture.
- Choose the appropriate banks and lenders: Never ever apply to numerous lenders at the same time, as it will lower your credit score. To fast forward the loan approval process, find out and come up with the banks which have already pre-approved the property where you intend to buy a home. Identification of the requirements for eligibility with these lenders are most important thing, including the minimum credit score and loan programme (processing fees, the rate of interest etc.). Before booking any property, choose one or two lenders that fits best as per your needs and get your loan approved from them only.
Get yourself well-prepared for the home loan by taking the above-mentioned considerations seriously. Even considering it you can also improve your chances for a quick home loan approval. Make sure to get co-borrowers have also good credit scores and ask them to be handy with their if they are being considered as co-borrowers.
