Here Are 4 Things to Consider When Applying for a Housing Loan

If this is your first home loan, you may have many questions, and there's a good possibility you'll overlook certain important considerations. We've done the legwork for you and compiled a list of everything you need to know before applying for a housing loan in India- 

1. The eligibility criteria- For home loans, different lending organisations have different eligibility standards. The age brackets for loan approval and the income requirements are the most important factors to consider when availing housing loan. This is because both are inextricably linked to a person's earning potential and ability to make timely payments.

2. Credit score- Borrowers with a high credit score may qualify for a cheaper interest rate on home loans from some banks. Your credit history can assist you in obtaining a better home loan deal from a bank. Most banks and other lenders regard a credit score of 750 and above to be a good credit score as a rule of thumb.

3. Your budget, down payment and EMI- Define your home-buying budget, including how much money you can put down as a down payment and how much of a mortgage you'll need. Next, determine the EMI range that you are comfortable with, as this will aid in determining the loan's term. Finally, you can use online home loan EMI calculators to experiment with different possibilities.

4. Documents required- Lenders will also want you to produce paperwork demonstrating your eligibility. Again, the necessary documents for a home loan may vary by lender, but the following are the most common:

• KYC documents like Aadhaar card, PAN card, election card, and others

•  Address proof like utility bills

•  Identity proof like driving license, election card, and others 

•  Passport size photograph

•  Income proof like Form 16 or salary slips for the salaried and last 6 months’ bank account and financial statements for the self-employed

• Business proof for the self-employed

With trusted Indian Companies offering housing loans avail, the Mortgage Loan at minimal documentation procedure and flexible repayment tenure. Use the Home Loan EMI calculator to estimate your monthly outflows and improve financial management, along with taking advantage of various housing schemes in India. To qualify, simply meet the easy home loan eligibility criteria and submit the documentation required to process the loan and await loan approval.