Your decision to buy a dream home
needs a lot of planning and preparations. Not only it requires you to arrange
adequate funds but also to ensure that you find the best property that should
define all your purposes, you’ve been looking for. Home loan is one of the
organized ways to buy your dream home without worrying about finances. But
before initiating the process of getting a home loan, read on to know the list
of five factors that could affect your home loan eligibility
if not taken care of it on time.
1. Your profession and tenure of work: It
is one of the most important things that most lenders look for while approving
a home loan of a potential candidate. This factor states that if you have
switched too many jobs in the recent past and do not have at least a year’s
salary slip to provide it as a proof of income tax, your home loan application
may be put on hold. Besides, lenders consider employees from the
well-established firms as the borrowers instead of those who are associated
with the start-up ventures. Some lenders are also cautious of sanctioning home
loan to those whose jobs are uncertain. Thus lawyers, media professional and
those employed with the police department may find it a tad difficult to get a
home loan.
2. Your CIBIL score: Your home loan
eligibility is greatly associated with your CIBIL score. The higher the score,
maximum are the chances of you getting a home loan and vice versa. As per the
current rule, if your CIBIL score is less than 750 out of 900, you’ll not be
considered eligible for a home loan. Other factors in your CIBIL report that
can lead to home loan application rejection include: if you have made too many
inquiries or have availed too much credit in the recent past and if your
repayment burden is already high. In order to avail a home loan, maintain good
credit behavior with your existing credit by making timely payment of all your
credit card outstanding in full each month and make timely repayments on your
existing loans.
3. The age of the property you purchasing:
According to the current trend, banks only provide home loans for properties
developed by real estate developers as they have a tie-up with them. This does
not mean you will not get a home loan for any other property. In its place, the
banks will carry out an independent evaluation of your chosen property and
perhaps lend you just a part of the property price. Old property is an apt
example for this situation as it is more prone to structure collapse in future.
4. Your marital status: Despite the fact
that many banks are offering home loan schemes especially for woman, good many
lenders don’t provide the home loan to those women who are single with the fear
that they may stop working after getting married or childbirth. This does not
mean that you should avoid getting married but we suggest you to put off your
home purchase till you tie the knot and then apply for a home loan jointly.
5. No credit history at all: If you are
living with the mindset that your home loan application will easily sail
through because you have no credit score at all, it could get you in a serious
mess as this factor can reject your home loan application at the very first
level. If you will have no credit history, the lender will have no such
reference to know your credit score history and your dream to buy your own home
will squeeze off in seconds. To avoid getting into such hassle, It is prudent
to have at least a few years of good credit history behind you before you think
of applying for a home loan
When you are applying for a home
loan, you are actually signing a long term bond with the bank. While do your
best in getting your papers in order and managing the funds for the down
payment, you must also keep the aforementioned factors in mind to improve your
home loan eligibility.
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