Owning a home of our own is a dream for most of us. According to a RBI report, 84% Indians have invested in properties to own houses. In fact, unlike before when people used to buy properties late in their careers, people are now investing when young. This is because of many reasons like high earning at the very beginning of our careers, aspiring to fulfil ambitions at a younger age, etc. The trend can also be attributed to home loan offers in the market.
A home loan has certainly become an easy tool to own a home. However, several factors do affect one’s eligibility for home loan. Find below a few factors and features that ensure your readiness to meet long-term financial expenditure.
Age – It plays a vital role in determining the eligibility of the amount to be paid as well as the tenure of the loan.
Younger people are given more preference by most banks and non-banking financial companies when it comes to home loan as the time for retirement is relatively more.
Steady job – Steadiness in job helps achieve higher loan eligibility. Thus, the longer the work period in a company, the more are the chances to get approval.
Steady income – Frequent job changing reflects one’s negatively on one’s competency of retaining a job. This means, a stable income source increases your home loan eligibility and chances for approval.
CIBIL score – CIBIL is a main factor to evaluate credit history. CIBIL score more than 800 (out of 900) helps with quick loan approval and high eligibility. Unpaid credit or pre-existent debts, or previous loan defaults hurds CIBIL score. A good mix of timely-paid secured and unsecured debts helps.
Tips To Help Increase Home Loan Eligibility:
- Include spousal income
- Increase tenure period
- Added earnings
- Clear existing or previous loans
- Good employer-Bank affinity
In short, maintain good credit score to get a home loan of your choice. Timely payments help avoid loan traps and increase creditworthiness in the near future. For more personal finance advice, approach ArthaYantra – World’s only full-service robo advisory.