Many people apply for home loans and still face rejections. It is because they don’t consider a few factors affecting housing loans. Read on and know more!
Research for best home loan deals online
When it comes to applying for a home loan, you may come across many offers. It may confuse you on which one to go for. Hence, the best thing is to compare all available offers online on a third-party website. This way, you can select an offer matching your needs and repayment capacity.
Check your CIBIL score
The next thing is to check your CIBIL score for home loan. Since your credit score is the mirror of your creditworthiness, it showcases if you can make timely repayments or not. If your credit score is 750 or more, you can get the home loan approval faster and at a lower rate.
Loan tenor
Many people go for a longer home loan tenor and pay lower EMIs. It is a good thing if you can’t pay a higher EMI amount. But many borrowers are unaware of the extra interest charges that they have to cough up on choosing a longer tenor. If you must go for a longer tenor, you should make prepayments during the tenor. It will help you reduce the home loan interest amount and save considerably.
Do not change jobs
When you have to apply for home loans, you should ensure having a robust employment record. Most lenders would want you to have an employment history of 3 years. If you are a self-employed individual, you need to have a business vintage of at least 5 years to get the loan approval.
