Getting a home loan is way more difficult than actually planning to purchase a new home. It is a stressful journey, which begins with checking your home loan eligibility. The bank and finance companies check everything from your income and current liabilities to your assets and savings in your bank accounts. So, it is your responsibility to never leave a single stone unturned when it comes to increasing your home loan eligibility. In this post, we have tried to tell you those tips and advises to get a higher loan amount.
Opt for a Long-Term Loan
There are numerous experts in the market who say that the total amount of the loan sanctioned by the bank or any other finance company is directly proportional to the duration of the loan. For example, someone is intending to take a loan of 20 lakhs for a tenure of 15 years. This someone can get a loan of around 30 lakhs if he can extend his loan tenure up to 20 years. But, here age plays a very important factor. Obviously, the bank will not increase this loan amount if the applicant is over 50 years in age as banks do not approve loans to people, who is beyond 65 years of age.
Clear Existing Loans
It is really important for applicants to clear out all the debts taken from banks before applying for any other loan. This ultimately will increase your overall monthly savings and hence the home loan eligibility. Clear all your pending loans, close such accounts, get no due or loan closure certificate and make sure to get it updated in your CIBIL score.
Include Your Spouse
Including your working spouse as a joint applicant is another thing that you can do to increase your home loan eligibility. As you and your spouse, both are earning and sharing the financial responsibilities, therefore you both can repay the monthly instalments. Due to this, banks easily approve a higher home loan amount to such applicants.
CIBIL Credit Score
The CIBIL credit score is one of the most important factors that play a vital role in getting a home loan. There are many applicants who achieve a CIBIL score of 700 or more. Such customers can ask the bank or finance company to stretch their loan limit. On the other hand, applicants with a CIBIL score of less than 700 can find it difficult to get such favours from the banks.
While applying for a home loan, it is necessary for you to keep a check on how much perks and variable pay you have earned in the last past year as your performance bonus. This can help a lot in increasing your home loan eligibility. In case you are required to take a higher loan amount, your variable pay can act like a cherry on the cake for you.
Take Your Time
As it has been iterated earlier, try to pull up your CIBIL credit score. Look out for errors, raise a dispute if you find any and get a clean credit report. Banks seems to be more than happy if you achieve a 700+ CIBIL score and can offer you a higher loan amount. So, try to negotiate them on the interest rate. Apart from this, enquire about the other benefits that you may get from the bank.
Your dream of owning a dream home can turn into reality if you are living a life, which is financially disciplined. All you need to know is when to hit the bull’s eye at the right time to reap maximum benefits.