Things You Must Know Before Applying For Home Loan - Loan Trivia

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Monday, 26 April 2021

Things You Must Know Before Applying For Home Loan


Are you looking to buy or build your dream home using a home loan? You can apply home loans and get a considerable amount as per your eligibility. 

But when you apply for home loan, lenders want you to be creditworthy. It is because its repayments run for years, and you should have the funds to repay. 

Hence, before you apply home loans, it becomes a must to consider a few factors. Read on!

  1. Check out your home loan eligibility 

Unless you are eligible, you can’t get the housing loan approval. You can do that by checking out lender’s eligibility norms mentioned on their websites. You can also do that utilizing the home loan eligibility calculator available on their websites. 

  1. Maintain a robust CIBIL score

Even though your home loan is a secured debt and it does not need any collateral, lenders want to confirm if you are a creditworthy applicant. They analyze it by looking at your credit score. If it is good, it means that you have paid your bills on time. And on the basis of this, you can get the loan approval. This way, you can also negotiate for a lower home loan interest rate and pay reduced EMIs. A credit score of 750 or more is what you need to maintain. You can do that by paying your loan, credit card and other EMIs on time. 

  1. Keep your debt to income ratio lower

If you are paying a large number of EMIs per month, you may not have funds left to cater to another EMI. It is where it becomes a must to pay off a few obligations before you apply for home loans. 

If you are able to consider these aspects, you won’t find issues in getting the home loan approval.

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