Home loans can help your dream of owning a home come true. With stiff competition prevailing in the home loan market, Banks and private finance institutions employ various marketing techniques to rope in a borrower.
Yet, there are some key factors that decide your prospects of getting a home loan sanctioned which are outlined below:
Availability of all the requisite documents
There are many essential documents demanded by home loan lenders [strictly by PSU Banks] when a home buyer approaches a lender for a home loan. These broadly include PAN details, Aadhaar details, income proofs and documents pertaining to IT returns. Make sure that you produce all of them as they not only ease the process of getting a loan but also enhance the scope to get a good home loan interest rate.
CIBIL score
CIBIL stands for Credit Information Bureau (India) Limited. It generates a score [CIBIL score] which is a 3 digit number ranging between 300-900 by evaluating your credit history and creditworthiness. The closer your score is to 900, the stronger your credit profile to get a home loan. You can estimate your CIBIL score online, free.
Your housing project must be RERA registered
The Real Estate Act makes it mandatory for commercial and residential real estate projects to register with the Real Estate Regulatory Authority [RERA]. It provides greater transparency in project marketing and execution. It is important to note that no home buyer will get a home loan if the builder is not registered with RERA. The RERA Act is fully operational in the states of Maharashtra, Gujarat, Madhya Pradesh, Punjab and Rajasthan.
Occupation of the borrower
Housing loan institutions prefer borrowers who are Government employees as they have a stable job and are more unlikely to default while repaying their home loan. Thereafter, lenders while calculating the eligibility of the borrower through the home loan eligibility calculator, prefer doctors and people working with blue chip companies. Furthermore, lenders also check the the history of employers paying salaries/dues to its employees.
Age of the borrower
Age is another criterion that lenders consider before giving a loan. People in the age group of 30-50 years are preferred more as they have a good number of working years left to repay the loan amount.
These are some of the factors you need to keep in mind if you are a home loan aspirant. Remember to calculate your monthly installments using the home loan emi calculator. Also, when you have all the requisites for a home loan working in your favor, you get to choose from a wide gamut of lenders. That leads you closer to fulfilling your dream of owning a home without a hassle.