A home loan is considered as a boon for more than one reason but being eligible to get a home loan is thus totally a different ball game. Eligibility is not considered as a simple thing to assess. It is thus a complicated process; the lenders, however, consider your current liabilities, assets and the income. If the mortgage requirement is marginally higher than what borrower is eligible for, small changes in the way he projects himself as an applicant may thus help in increasing the eligibility. Here are the top seven tips to increase it:
1) Clear your existing loans: Borrower should look out for those nagging credit card loans or the personal loans that he took a couple of years ago in order to purchase one of the fetishes that borrower is still repaying. This is thus clearly a red flag when a lender is trying to assess borrower’s eligibility. He should first 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.
2) Variable pay: 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 the potential lenders to consider while calculating the eligibility.
3) Rental income: 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.
4) Increase tenure: When borrower increases his home loan tenure, his eligibility can be increased.
5) Spouse earnings: If the borrower’s spouse is also earning, then it is a good idea to make a joint application for a home loan. This thus increases the home loan eligibility dramatically. This also results in the meaning that the liability of repaying the home loan is left to both.
6) Take your time: Before borrower applies for a home loan, he should pull out his CIBIL score. He should look for errors, and if he finds any, he must raise a dispute and ask for a clean CIBIL report.
7) Consider 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.
A dream home can thus be closer to reality if borrower lives a financially disciplined life. All that it takes to buy a dream home is to make smart moves at the right time in your life and career.