Buying a dream home is usually a big financial commitment a lot of planning and adjustments in one’s budget and finances are required.
It is recommended to verify your home loan eligibility before applying for a home loan so that you have a clear image of your eligibility.When you apply for a home loan, the lender will evaluate your ability to repay the loan in a timely manner depending on the home loan eligibility criteria.Home loan eligibility refers to the maximum loan amount you can get depending on factors such as your existing source of income, payment history, age, credit score, and other factors.Below are some points which increase your home loan eligibility:All existing loans must be paid off:All of your previous ambiguous loans would have a negative impact on your home loan eligibility.
Previous loan payments would have a significant impact on your home loan eligibility.
When it comes to approving your home loan, your CIBIL score is one of the most important considerations.
Your CIBIL score is an indicator of your capacity to repay a loan within the specified period of time.
Maintain a credit score of at least 750 (out of 900) to boost your home loan eligibility and to help you get a lower interest rate from the loan provider.Extend the duration of your home loan:Your home loan eligibility is decided by your capacity to repay the loan amount each month, which we refer to as equated monthly instalments (EMIs).If you choose a longer loan term, you will have to pay lesser monthly EMIs, which is ideal for all middle and lower middle-class borrowers, and you will be eligible for a larger home loan amount to purchase your dream home for your family.Maintain a FOIR of less than 40%:The Fixed Obligation to Income Ratio (FOIR) is an important factor to consider when deciding loan eligibility.