Tips to improve your home loan eligibility:

The applicant needs to follow a particular set of parameters to get the loan approved by the lender. As per the financial lending institution rules, the borrower must submit valid government id proof like pan card, aadhar card, voter id card, passport. Etc. The applicant also needs to submit the employment proof, the last three months’ salary slips, passport size photograph. Etc. If the applicant is self-employed, the borrower needs to submit the shop act license, GST registration certificate, and bank statement showing turn over the business records. Also, as per the RBI mandate, the borrower needs to file an ITR [Income tax returns] on the income of which at least three years ITR statement should be submitted before the loans’ approval. Also, the CIBIL score plays a vital role in support of the loans. If the CIBIL score is found to be good or excellent, then the borrower’s loan is quickly being approved. While if the borrower’s CIBIL ratings are found to be average or poor, it indicates that the borrower has either delayed some payments of the credit with the bank or else has been a wilful defaulter of the bank.

The best quality efforts which the applicant can implement for easy approval of loans is that the borrower should properly understand the requirements of the documents of the bank as well as should understand the RBI guidelines, which are necessary to be followed by the lending financial institution before the approval of the loans. Buying the home is a crucial factor & a decision in everyone’s life. A home loan helps an individual set his/her financial goals and plan accordingly. Opting for home loans can help individuals buy their dream homes at an early age, thus helping individuals reach up to financial objectives of becoming independent and self-reliant. The disbursement of loans gives a significant boost to the real estate industry and the housing finance industry.

Following are the tips to improve the home loan eligibility:   

  • Proper employment proof records:

The borrower should be able to present the proof of employment in order to show the exact source of the income proof to a lender. The borrower needs to submit the offer letter, salary slips of the last three months, no-objection certificate from the employer showing the stability of the job in case of a request by the lender should also be provided. Also, the employer should not be in such a way wherein there is a life threat to an individual working in a factory/construction site. As in the case of the applicant working in such jobs where there is a threat to an individual’s life while working on a site, then the loan of the borrower can be rejected in case there is no guarantor of the loan. The borrower should be found well stable at one place to be working to obtain the loans.

 

  • Proper CIBIL score records:

The applicant should maintain a good CIBIL score to get easy approval of the loans. There are some Para-meter scales based on which the CIBIL score ratings are decided. The borrower repays all the monthly installments on time then the borrower’s ratings are said to be Excellent or Good, thus clearly indicating that the borrower repays the installment on time. If the ratings are average or poor, then it clearly shows that the borrower is negligent towards the repayment of credits or is amongst the wilful defaulters. If the borrower has poor or average ratings, the applicant can improve their ratings by repaying the existing installments on time, paying the credit card bills on time, opting for a lesser credit limit of up to 30% of the total credit provided by the financial institution. All these factors can lead to the CIBIL score’s improvement, thus leading to the easy approval of loans to the borrower.

 

  • Opt for the lower loans as compared to the actual credit limit been possible to be taken:

The borrower can repay the loans through maximum down payment and minimum installment to opt for the lower loans. When the borrower opts for the lower loans, then the chances of approval of the bank’s increases, as the banks are in an eager stage to disburse loans to the borrower & if the loan amount is lesser, then there is a higher possibility of the loan being approved by the lender. The higher the down payment is made, and the better is the bank balance being maintained by the borrower, the banks do become more optimistic about the loan approval.

 

  • Maintain a higher bank balance in order to prove financial stability

If the borrower is maintaining a sufficient bank balance in the bank account, then the borrower can easily opt for the loans. The better maintenance of the bank balance puts a better impression on the borrower as the individual is financially stable. A person who maintains a better bank balance can never suddenly face financial difficulties in case of the sudden stoppage of the income or in spite of many ups & downs in their career; the borrower can still repay the loans.

 

Conclusion:

Thus, the borrower must maintain the documents’ proper records while applying for the loans. Also, the borrower should maintain better CIBIL records & try to improve them in case of the records are found to be poor. Also, maintaining a stable bank balance is mandatory to help the lender gain confidence in the loans’ disbursal. 

 

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