Eligibility For a Home Loan

Home loan seekers aiming to derive maximum benefits from a home loan usually look for the maximum loan amount to minimize the marginal amount that they have to invest. As the banks carefully probe into the financial history of a home-loan seeker, it is very important for him/her to be completely aware of requisites, and terms and conditions that banks usually consider before approving a home loan.

The following are few important tips that help you in getting a beneficial home loan:

Income and Liabilities:

1. A home loan seeker should close all the liabilities which he has in his bank statement and pay slips if possible.
2. Mention the liabilities that you want to close to avail a home loan.
3. Mention the balance tenure of the loans for which the repayment period is more than 12 months and which you don’t want to close.
4. Also mention the loans for which the repayment period is less than 12 months. Great importance must be given to this factor and must be provided without failure.
5. Submit the proofs of your additional income like bonuses, reimbursements and rental incomes etc.

Credit History:

Credit History is another important area that banks usually look into before funding for a home. If a home loan seeker has any discrepancies in his/her credit history then banks give least importance and at times not even consider the application for a home loan. Hence home loan seeker must take utmost care in this regard to avoid disappointments.

Banks usually look into CIBIL (Credit Information Bureau (India) Limited) report before considering a candidate for a home loan. So it is very important to give good attention to this factor. The following are few suggestions to home loan seekers in this regard:

1. Make sure that all your loan payments are done without any bounces.
2. Make sure that you check your credit amount on your credit cards regularly and repay promptly.
3. Convert any high value transaction into EMI’s if you are unable to make the payment within the given time before the statement pertaining to your credit card is generated.
4. Avoid late payments as they not only charge late payment fees but also spoil your credit history.
5. Ensure that you clear all your dues and over dues before applying for any loan.
6. Transfer your balances to another account (card) if you have the provision to make payment with in a period of 90 days (interest free period).
7. If you have made any credit card settlements then keep all the receipts of payments made towards those cards for future references.
8. Don’t issue any cheque if you do not have sufficient funds in your account.