For a majority of people who want to have their own nest, purchasing a home is one of the biggest aspirations. Nowadays, people don’t wait for an enough saving to help them cover a home purchase.
It’s because modern day online Housing Loan application and approval facility are available and if one has the required creditworthiness as required by a lender, a loan gets sanctioned.
Although it may look easy to avail a Housing Loan online, if you don’t consider or keep some major things in mind, your journey right from approval to money disbursal will become tedious.
In the same context, let’s provide you five elements that you need to keep in mind while availing a Home Loan.
- Your salary or income
You should know that calculating the EMI is an irritable method to measure your Home Loan eligibility. The EMI is limited to around 50-80% of the salary of the borrower (basic salary + DA). If you already have any existing liabilities in the form of an existing loan EMIs, your eligibility for the Home Loan will further go up. Want to know more? Use a Home Loan EMI calculator on a reputed lender’s website and know how much Home Loan amount you can afford to pay as EMI.
- Your dependents
Some banks and lenders may be sensitive to the number of people who are dependent on you. These may be the people as close as your spouse, children, parents, siblings and more, but Housing Loan service providers consider people with higher dependents as risks. Why? It’s because, to them, a higher number of dependents means a lower repayment capacity.
- Your employment type
If you are a salaried professional who has been consistent in his/her job for at least 3 years, you won’t find much of an issue to grab a Housing Loan. However, borrowers who are willing for a Housing Loan, but have switched jobs frequently or self-employed applicants may find it tougher to get through a Home Loan application. Thus, what kind of work you are doing and for how many years also affect your Home Loan eligibility.
- The age factor
Are you on the verge of your retirement and say have only 8-10 years left more to work and want to apply for a Home Loan? Lenders may approve your Home Loan, but you may not get an extended tenor to repay the loan. Why? It’s because service providers consider people are nearing their retirement age left with less earning years to repay the Home Loan. Thus, if you are a young applicant, you are bound to get a longer tenor. Do you want to extend your loan tenor while you are nearing the retirement age? Apply for a Housing Loan with a young co-applicant.
The Bottom Line
A Housing Loan is hassle-free, online and comes laced with an instant approval and much more, if you consider the points mentioned above, you won’t see any issues cropping up. Along with these things, always ensure a robust CIBIL score and a good repayment history to boost your Housing Loan eligibility further.