Basic tips for getting your home loan approved
To get the house of your dreams, it is essential to fit in the eligibility criteria personally as well as financially. And the most daunting task is to get the loan approved from the chosen lender. So, to increase your chances of getting a Home Loan approved, it is essential to know the Home Loan application process and the borrower’s eligibility. Few banks allow you to check the eligibility with the help of a Home Loan EMI calculator and help you understand the various parameters of a Home Loan. For instance, with the ICICI Bank Home Loan calculator, you can get the most accurate estimate of Home Loan that you can borrow from ICICI Bank. You can also apply for instant Home Loan approval online and make the process even easier. To get your Mortgage Loan approved, it is essential to be well-prepared and follow a few basic tips.
To get your loan approved:
Know your credit score - Credit score plays a major role in the loan approval process and this is an essential part which many investors do not consider before submitting for a Home Loan application. If the credit scores fall below the minimum criteria, lenders can deny for a Mortgage Loan. Moreover, other than the requirements for a high score, frequently missed payments and delay in paying debts can stop the processing of Home Loans. To avoid last-minute discrepancies, it is necessary to keep a high credit score, pay bills on-time and lower your debt amount.
Start saving grossly- If you have already planned to get a home, then it is necessary to start saving to maximise your down payment. Aiming for a high down payment always helps to knock down the mortgage balance and save a corpus amount for future finances too.
Do not leave your job- Sticking to the job is crucial till the entire loan period. It is even beneficial if both the partners stay at the job and take up a joint loan. Other than the benefits that one gets on taxes, any change in the employment status can affect the Mortgage Loan greatly. Taking a job with lower pay and quitting a job can wreck the entire loan process and lenders may start revaluating your finances and your eligibility for the loan.
Pay off old debts- It is not mandatory to have zero balance in the Credit Card to avail of a Mortgage Loan; but lesser the debt, higher are the chances to get the loan. The lenders evaluate your debt-to-income ratio to approve your loan amount. Having numerous Credit Cards or debts can lower the chances of getting a Home Loan or a low mortgage amount for the loan.
Apply for pre-approved home loan- A pre-approved Home Loan sanction helps you build a reputation with the banks as well as with the builders. The builders take the negotiation more seriously as they find you more serious about the purchase. In case of banks, they just need to evaluate the property papers and getting a Home Loan approval becomes easier.
It is essential to have proper planning before initiating the loan hunting process. Managing the finances and credit is a lengthy process and needs to be addressed in the correct manner for a seamless Home Loan approval.
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