We all work with a dream to buy a home for ourselves. A place where we can abode and have peace of mind. The moment we land up on a job the next big thing we want is a house which we can call it as our home. The very idea of owning a house in the nearby future tends to fill our heart with excitement and joy. To fulfill this well- nurtured dream of owning a home banks, as well as on- banking financial companies (NBFC) provide its customer with a home loan.
There are several factors that affect the Home loan eligibility criteria of a person who seek the home loan from the lender. Have a look at the eligibility required to avail a home loan;
Profession or nature of the job- If you are a salaried individual working in a government sector, profit making PSU’s or private company with a stable salary then your eligibility to get your loan becomes higher. As the lender tends to give the loan to people with job security and stable income. If you have changed your job frequently, the chances to get a loan becomes less. If you are self-employed then the business should be well settled and must be a profit maker for at least 3 years. A job stability increases the chance to get a home loan.
Age- Another important factor that a bank sees before sanctioning a home loan is the age of the applicants. If you are in your 30s, then you have at least 20-30 years to repay your home loan depending on the amount borrowed. While if you are in your 50’s the retirement age is near, hence the tenure to repay your loan reduces to 10 years. The Home loan interest rate for them is usually higher than compared to those who are relevantly younger.
Credit score- The credit score of the individual seeking a home loan is one of the important criteria which a bank sees before sanctioning a home loan. The banks maintain a database of the recipient and them vigil it to check the previous loan history, regularity of EMI’s paid and so on. If you have any repayment issue then your credit score may decrease and the chances of getting a loan also decreases.
Attributes of the property- A bank usually go for a property visit to check the value of property, how old is the property, its condition etc. It also checks if the property is disputed or not. Along with it the certificates of the property is also monitored. The large housing projects easily get the home loan sanctions while the builder’s flats and floors need more efforts to sanction their home loan.
A number of dependents- A bank also sees the number of people that are dependent on you, so as to know your outflow of income and hence knowing the capacity to pay for the monthly installment.
Co-applicant or guarantor- The home loan is a secured loan. The property is the security that is overtaken by a bank until the repayment of the loan.