Top 10 Pointers to Follow Which Can Help You To Improve Your Home Loan Eligibility

 It is the dream of so many people to move into their own homes. Sometimes, the shortage of funds may not help you realize the dream. 

It is where a housing loan helps you avail a significant amount to buy or build your home. 

But, since home loans are secured, it is sanctioned to only eligible borrowers.

Lenders want to ensure that a borrower makes timely home loan EMIs as it is a long term obligation. 

If you want to improve your home loan eligibility, here is a quick post!

1. Maintain a good repayment record 

If you don’t have any records of defaults, you can get faster loan approval. Hence, you should make timely repayments always. 

2. Keep your CIBIL score higher 

A higher CIBIL score is a guarantee that you can pay the home loan EMIs on time. Keep it maintained 750 or more to improve housing loan eligibility. 

3. Keep your credit utilization lower

If you keep your credit utilization lower, you can enjoy fast home loan approval. 

4. Have a lower FOIR

A FOIR of 50% or less can help you boost your home loan eligibility. FOIR indicates your total obligations on your income. The lower is the FOIR score, the better. 

5. Apply for a joint home loan

Applying for a joint housing loan with a person with a higher credit score can assist you to boost your home loan eligibility. 

6. Pay off existing debts 

If you clear your ongoing debts, you can convince a lender to pay the home loan EMIs on time. In turn, it can improve your home loan eligibility. 

7. Pay a higher down payment amount 

You can pay a higher down payment to see faster loan approval. Try paying more than 20% of the loan amount as a down payment. 

8. Do not apply for many loans

You should apply for one loan at a time. If not, it may lead to hard CIBIL enquiries. Your credit score may be affected for a long time due to this. 

9. Go for a smaller tenor 

A small tenor means you will pay off the housing loan faster. Hence, if possible, go for a shorter tenor. But it also means you have to pay higher home loan EMI with interest savings.    

10.  Be consistently employed 

If you are consistently employed, you will have no issues paying off home loan EMIs without defaults. 

Considering these tips can surely help you boost your housing loan eligibility. You can also use a home loan eligibility calculator to know an amount your income can support.