Top 6 Ways to Boost Your Eligibility Criteria on Home Loan - Loan Trivia


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Tuesday 5 July 2022

Top 6 Ways to Boost Your Eligibility Criteria on Home Loan

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Many a time, potential buyers are not able to avail of a home loan due to their inability to satisfy the eligibility criteria. Hence, besides knowing about the eligibility criteria on home loan, applicants must know how to enhance it. Here are the top six ways to do so.


Apply with a Co-applicant 

To improve your chances of getting a home loan application approved, individuals can consider availing of a joint loan, preferably with a spouse, sibling, children, or parent. However, the person must have a stable income and decent credit score. Moreover, adding a female home loan co-applicant can result in lower interest rates in some cases. 


Avoid Job Change

If you are salaried and are planning to avail a home loan, you must have been working in an organization for at least two years. Frequently changing jobs impact home loan eligibility.


Work on Your CIBIL Score 

One of the most crucial deciding factors for a borrower’s home loan eligibility is the CIBIL score. The CIBIL score reflects a borrower’s creditworthiness. Hence, a borrower has to maintain a CIBIL score of 750 or higher as that plays the role of a potent indicator of their attitude toward managing a loan. 


Choose the Most Appropriate Lender

If you are new to credit or are self-employed, you will have enhanced chances of securing a loan from a housing finance company. Most housing finance companies have come up with in-house models that help ascertain the creditworthiness and repayment capacity of borrowers with informal sources of income.


Show Additional Income Sources 

Disclosing all additional sources of income can improve one’s eligibility to secure a home loan. Hence, borrowers must show additional income sources, such as rental income, income from a part-time business, investments, etc. It will help surpass the monthly income parameter also. 


Clear Existing Debts

Applicants must clear existing loans and seek a NOC, which must be updated to reflect the enhanced credit score. This will improve the debt-to-income ratio and help apply for a home loan without hassle.


Bottom Line

If you take the above mentioned steps, you can quickly become eligible for a higher home loan amount and extended tenor, besides better terms and conditions. You must start the procedure by first working on your credit scores and fixing errors if required. Another pro tip would be to use a home loan EMI calculator to calculate interest rate on home loan.

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