Easy Steps To Improve Your Home Loan Eligibility

With rising price of lands, buying a home is becoming as expensive as ever. In this situation, the only option that people have is to look for home loans. The unfortunate news is that the availability of home loan is also decreasing rapidly. That means you now have a greater chance to be refused after applying for a home loan. Here we give you some tricks for increasing your home loan eligibility that might come handy.

A few steps that will give you a greater chance of getting home loans

Here are a few basic steps which will help you increase your eligibility for home loan in an otherwise competitive market

1.    A longer tenure- when you seek a home loan it is a good idea to opt for a longer tenure. This increases you eligibility for a loan it will since a longer duration will lead to decreasing EMI rate, and naturally a bigger chance of paying that EMI. Thus, a longer term works for almost all types of leans and not only home loans.

2.    An alternative source of income- a married couple seeking home should look for alternative source of income. A double income family is more likely be trusted with home loans than a single income family because obviously in the former, it is more likely that the loan will be repaid. Or else, if you can club your income with your earning parent, or offspring, it will help your cause.

3.    Good credit scores - another point that the loan giving agencies take a note of is the credit scores of the applicant. You can always improve your credit scores by repaying old loans before you go ahead and apply for a home loan. Any borrower who has failed to pay 12 back to back installments of an earlier loan will be marked as ineligible for any further loan. Therefore, make sure that your credit record is clean before you go ahead and look for a new loan.

4.    Gross pay versus basic pay - since the basic pay is much less than your gross pay, you need to inquire from the agency that if they consider the latter. Taking into account the gross pay helps you to get a loan since your worth will increase.

5.    Set up loan - You can also opt for set up loan, where the EMI is quite low in the initial part of the term and it increases in the latter half of the tenure of the loan.
These five steps, if followed properly can increase your eligibility for a home loan to a considerable extent though they cannot ensure the loan.

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