Purchasing a house property is one of the most crucial investments for most people in India. Nonetheless, many of them ask, ‘What is the perfect time to invest in an IDFC home loan, Indiabulls home loan, or in-home loans offered by other lenders? In the early days, individuals usually thought about purchasing a home when they reached 45 years of age and their finances stabilized.
All You Need to How to Get Indiabulls Home Loan or IDFC Home Loan Approved
Today the situations have drastically changed owing to the emergence of home loans as now people can think of availing homes much earlier in their life. However, as home loans come with big-ticket amounts clubbed with long repayment tenures extending up to 30 years, individuals must be financially prepared for taking up such a long-term financial commitment.
While home loans are available easily with numerous advantages like maximum funding of up to 75-90% of the property’s price, flexible repayment tenures, etc., you must ensure to meet all the home loan eligibility parameters set by various home loans like IDFC home loan, Indiabulls home loan, etc.
To make sure that your home loan gets approved, you require to plan and prepare from before. Listed below are some of the crucial tips you require abiding by to get your Indiabulls home loan, IDFC home loan or home loan offered by other lenders approved.
Save Adequately to Pay the Down Payment Amount
To purchase a home, you require doing an in-depth analysis of all the property prices in the city you want to reside in. It will assist you to know the amount you can initially pay. It is recommended to plan out early as it helps to save adequately to contribute a higher down payment. It will not just assist you in getting your home loan approved but even acquire it at a lower rate.
Review & Maintain a Strong Credit Score
When it is about assessing your eligibility for a home loan, most of the lending banks first review your credit score. A credit score is a 3 digit representation of your creditworthiness. Your past credit behavior in the form of repayments and borrowings are shared by lenders, which assists credit bureaus in generating your credit score. By reviewing your credit report, your lender or issuer gets to know about your repayment capacity.
To get your Indiabulls home loan, IDFC home loan, and other home loans approved, you must maintain a strong financial record and also a credit score of 750 and above. Note that credit score ranges anywhere from 300 to 900 points.
Prepare all Your Documents Beforehand
A considerable number of applications for home loans get rejected because of the submission of non supporting documents. Lenders can never compromise on documents even if one satisfies other requirements.
Thus, accumulate and ensure to be ready with appropriate documents to prove your residential address, identity and monthly income and also those linked with the property you are proposing to purchase through a home loan. As entrepreneurs or business people, you are required to submit documents linked to your business.
Avoid Constant Job Switches
The worst event that can take place in the course of a loan period is change or loss of job. It will impact your loan repayment capacity to a massive extent. In case your spouse is working, it is always a better decision to go for a joint home loan and stick with the job for availing of tax benefits.
Ensure to Assess your EMI Affordability
Lenders ensure to consider the home loan applicant’s repayment capacity when evaluating his/her loan application. Generally, lenders need the applicants’ monthly debt repayment obligations involving the existing and new EMI to be under 60% of their monthly income. The ones exceeding this specified limit usually hold lower chances of availing of home loan approval.
Thus, ensure that you contain your monthly debt repayment obligations under 60% of your monthly income before you submit your home application. If it does, then you must first consider pulling down your existing EMIs by either foreclosing or prepaying some of your existing loans. Also, you can choose higher repayment tenures or make a higher down payment to lower your overall EMI outgo to increase your chances of home loan approval.
Ensure to Build Sufficient Contingency Fund
Financial emergencies such as illness, job loss, etc., usually come unannounced and can extremely impact your cash flows, incomes, loan repayment capacity and corpuses designated for your financial goals.
Inability to meet loan EMIs by due date not only makes you pay heavy penalties but even affects your credit score. While liquidating your investments to repay your home loan EMIs is always an option, opting for this route can massively affect your financial health.
A prudent way to face such uncertainties is to form a sufficient backup, also called an emergency fund. This specific fund must be at least six times your monthly mandatory expenditure, including your new EMI and the existing EMI of your home loan. Thus, as soon as you start planning for a home loan, try and simultaneously increase your emergency fund size by nearly six times the new loan’s expected EMI.
Have a Co-owner
There are times when lenders might doubt your capacity to meet EMIs, and for this purpose, your application for a home loan might be delayed. In case you have any co-applicant that earns a substantial income, apply for a joint home loan & club both incomes so as to get your home loan approved easily.
Respond to Lender’s Request Promptly
The lender might still require more documents in case of clarification and might contact you to provide the required information. For those who are not prompt at responding to lenders, it will result in a delay of loan processes resulting in application rejection.
For making your loan procedure seamless, it is crucial to prepare beforehand appropriate steps as to how you aim at approaching a suitable lender for a home loan. Above mentioned tips might assist you well with such lengthy loan procedures with zero difficulties.
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