Home loans ease the procedure of buying a house or pursuing your dream of residential property. These loans have the longest repayment tenure (10-30 years) approved with a cheap rate of interest (beginning from INR 650 on every 1-lakh). While buying a home is a long-term investment, receiving loan approval often takes time.
For those interested in buying residential properties in the immediate future, this blog encourages you to apply for a home loan, besides how to receive instant approval from the lending authorities.
1. What’s your monthly income?
Monthly income is a vital criterion that often influences loan approval. Financial institutions prefer stable income sources to ensure hassle-free repayment. Home loan repayment also follows a regular EMI pattern. Irrespective of home loan interest rates, you need a six-figure monthly paycheck to ensure smooth payback.
There’s a minimum income slab against home loans as per locations. Please ask your loan agent to learn more about the minimum monthly income against the loan amount.
2. Do you have any previous credit records?
Credit history matters while submitting your loan application. Having a clinical CIBIL score of over 800 shows your potential to take a loan and repay them without fail. Home loans are the bulkiest of all other personal loans.
Before you apply for a home loan, develop your portfolio to fetch a higher credit score. If you save enough for the down payment, you need to take less loan amount negotiable to your monthly income and credit history.
3. Describe your present financial condition?
Lending authorities pay special attention to your bank statements, spending patterns, even lifestyle to measure your financial responsibility. To ensure instant home loan approval, maintain a comfortable bank balance for over a year before submitting your loan application.
Reduce miscellaneous expenses unless you have earned the home loan and successfully repaid it. Also, ensure you don’t have a running loan while applying for a home loan.
4. How much house loan?
The nature of your residential property of interest influences the home loan interest rates on offer. If you are buying a plot in remote outskirts than a house worth the same in a metropolitan location, you may receive a cheaper interest against the loan amount.
To pay less on your loan amount, save enough to prepay the entire loan before the deadline in bulk.
5. Do you have a co-applicant for this loan?
Single loan applicants receive less competitive rates than loan applications having a co-applicant. Having a co-applicant means higher collateral against the loan. To attract potential home buyers, lending institutions offer attractive interest rates for couples applying for home loans.
You can share the EMI with the co-applicant, reducing financial stress against other mandatory expenses. If you apply for a home loan with a co-applicant, you have greater chances for instant approval than single applicants.
The post-COVID market has seen a rise in cheap home loan offers. Factors such as a healthy monthly paycheck, clean repayment records, a spotless loan application and reference from a valuable asset can grant you an instant home loan.