Buying your home in an upmarket area is everyone’s dream, right? If you have made the decision to own your home, then the most crucial step is to check your eligibility for a home loan. Home loan surely helps first-time property buyers to own a home on easy terms but what if your home loan falls short of a bank’s norms? So how can you improve your chances to become eligible for a home loan?
Here’re five strong ways that can increase your eligibility for home loan. Well, some may sound familiar while others will keep you wondering why you did not try it before.
Clear All Pre-Existing Loans
Before you apply for home loan from the bank, make sure you have cleared all the pre-existing loans you had taken. This is because the banks see this as a strong reason to reduce the amount for the loan you are entitled too. Therefore, clear your previous loans and then ensure that it is updated in your CIBIL credit score. It will improve your home loan eligibility and you can be eligible for a bigger loan amount.
Increase Your Tenure
This is one of the most effective ways to improve your home loan eligibility. A longer tenure raises the loan eligibility because the load of EMI decreases and the ability to repay the bank improves.
Apply For The Home Loan Along With A Co-Borrower
This is one way through which you can improve your eligibility. It is a good idea to include the income of father/mother/spouse or son. However, it is advisable to pre-check the bank's guidelines on who could be your co-applicant, before applying for the home loan. Bank will check the combined capacity of both the applicants to assess the home loan eligibility.
Consider a Step-up Loan
This kind of loan is also a good way to enhance eligibility. Under this scheme, the banks offer loan at the lower EMI in the beginning and then progressively increase the EMI as they start repaying the loan. If you are extremely sure of your financial status going forward, then this can be an easy way to increase the chance of eligibility.
Include Monetary Incentives
There are many employers who offer a range of monetary perks such as a bonus to their employees. Make sure to include all these monetary perks when making out your home loan application. This may be a good way to increase your home loan eligibility.