Factors that determine home loan eligibility
2 min read
If you are looking to increase your home loan eligibility, consider the factors that determine it. For home loan eligibility, lenders inspect the following:
- Income
- Credit score and credit history
- Age of the borrower
- Income source, i.e. salaried / self-employed and nature of employment
- Current debt to income ratio
- Existing relationship with the lender
Use a home loan eligibility calculator to know the amount that you are eligible for, instantly.
Some tips to increase home loan eligibility
- Prepay existing loans as much as possible
- Keep your debt-to-income ratio low
- Aim for a CIBIL score of 750 or more
- Eliminate credit card debt
- Pay all bills and loans in a timely manner, avoiding any defaults
- Get a copy of your credit report and fix errors, if any
- Have your parents / spouse become co-applicants for home loan
- Choose a long repayment tenor
- Declare other income sources like dividends / returns from investments, rentals, etc.
- Opt for well-known real estate projects by reputed real estate developers
Also read: How to calculate home loan eligibility?
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