Top Factors that Can Increase Their Home Loan Eligibility

Borrowers need to meet certain eligibility criteria for getting housing loan from banks and financial organisations. The eligibility criteria set by banks and Housing Finance Companies are too high to reduce the number of non-functioning assets of the financial organisations. These eligibility criteria include a good credit score, work experience, the person’s income, previous loans if any, citizenship, and much more.

 In addition, various documents need to be submitted by them to the loan provider to prove their eligibility. These include KYC documents, Income proofs, passport size photographs, and proof of the existence of business from the last five years (in the case of self-employed individuals), account statements, and much more. Loan is not granted to the people who cannot prove their eligibility.

Various factors help in increasing the home loan eligibility, which includes the following:

• Adding a co-applicant, in this case, if a person is not eligible as per the financial organisation’s criteria, they can add a co-applicant such as a family member to increase their chances. 

• Maintaining a credit score above 750, this includes paying regular credit card and debts. If a person has a credit score of around 800, companies tend to provide them loans easily. 

• Choose a longer tenure, A borrower who chooses a longer term for repayment has more chances of securing a loan than the person who prefers a smaller tenure. 

• Declare their additional income sources. A person with more income sources gets a loan easily as it shows a high repayment capacity.

If a person wants to increase their chances of meeting the home loan eligibility criteria, they should fulfill all the above criteria. 

With these housing loan facts in hand, the borrower will be able to spot an advantageous deal. A great home loan will include a low-interest rate, a tenor of up to 30 years, a high-value sanction, and a Home Loan Balance Transfer facility. To qualify, simply meet the easy home loan eligibility criteria, and submit the minimal documentation required to process the loan and await loan approval.