Factors which Decide your Home Loan Eligibility

Me and my wife are young corporate professionals looking to buy property. We have some savings that we plan to use for down payment. I plan to be the one who will apply for home loan to fund the balance. But I am unsure of how much home loan am I eligible for, though I know that loan eligibility is dependent on my income, but I am unaware of specific rules which go into computing my eligibility. I therefore want clarity on all factors which decide my home loan eligibility. 

Is this situation relatable to yours? Ever wondered what is stopping you from applying for a loan and buying your dream house in a prominent locality of the town. Do you know the home loan eligibility criteria? If not, then this article is meant for you. Use it to build your profile and have an edge which applying for your home loan. As per a primary eligibility, you should be an Indian citizen and atleast 21 years of age in order to qualify to apply for loan. Besides this, the lenders too put down different factors which decide your eligibility. Some basic factors include: city of residence, credit history, income, age etc. Let us study these in detail:

• Credit Score: If you have a credit score of 750 and above, then you easily qualify to apply for loan. Your score involves different other factors like the repayment history, number of existing loans you have, dues on credit card, any kind of debt that you took in past. A lender uses all these factors to determine your financial credibility to further access your repayment capacity before he sanctions the loan.
• Existing debt obligations: The number of loans and debts are never a problem but the unpaid dues are matter of concern for the lenders. They always give special attention to the repayment pattern and missing EMIs, payment of EMIs post the due dates and different unpaid dues may pose problem for you. It is henceforth, advised to be disciplined with the credit repayment.
• Your monthly income: Each lender has a minimum income criterion based on your work and city you reside at. You can easily meet these criteria and avail home loan. In fact in metro cities, the lenders also grant benefits such as repayment flexibility, low interest refill loan, 3 EMI holiday etc.
• Your age: Alongside the above factors for home loan eligibility criteria, there is another factor which is of utmost importance and that it is your age. The lenders are concerned about your age which also decides the numbers of years you will work as working or salaried professional. It is important to apply for a home loan atleast 10 years before retirement. To check your eligibility, you must use the Home loan Eligibility Calculator

There are different financial institutions that bring pre-approved offers for home loan, personal and business loans etc. They have simplified the process which saves you from the hassle and saves time. But it is important to do some homework before you reach these lenders. 

Use the home loan EMI calculator to know how much loan you qualify and the EMIs you are eligible for and start planning for your dream home.