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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