- The lender will consider
- The current liabilities
- Assets, and
- The income.
- If the mortgage requirement is marginally higher than what the borrower is eligible for
- Small changes in the way he projects himself as an applicant may help in increasing the eligibility.
- A good civil score for a home loan increases the chances for the borrower to get the home loan.
How to increase eligibility criteria for Home Loan
Clear your existing loans
- The borrower should look out for those nagging credit card loans or the personal loans that he took a couple of years ago to purchase one of the fetishes that the borrower is still repaying.
- This is a red flag when a lender is trying to assess the borrower’s eligibility.
- Borrower should
- Clear your existing loans, close those accounts, collect the loan closure or no-dues certificate, keep it safe and then ensure that it is updated in your CIBIL credit score.
- The borrower should make sure that he keeps a record of how much variable pay or perks the borrower earns as part of his job.
- This record would help potential lenders to consider while calculating the eligibility.
The rental income which the borrower earns from this house can thus be an additional source of income, which can enhance however enhance the loan value.
When a borrower increases his home loan tenure, his eligibility can be increased.
- If the borrower’s spouse is earning, then it is a good idea to make a joint application for a home loan.
- This would increase the home loan eligibility dramatically.
- It results in the meaning that the liability of repaying the home loan is left to both.
Take your time
- Before the borrower applies for a home loan, he should pull out his CIBIL score.
- The borrower should look for errors, and if he finds any, must raise a dispute and ask for a clean CIBIL report.
Step up loans
- Step up loans are considered as a good way to enhance the eligibility for those who are in professions where one would struggle initially, but the possibility of the higher rewards are bright as they establish themselves like a doctor or a chartered accountant.
- Under this scheme, the banks thus offer loan at the lower EMIs in the initial years and them then gradually increase the EMI as they start repaying the loan.