Of all the big decisions taken in life, buying a new house is both crucial and life-altering. Getting a new home in a city like Thane requires all kinds of help and support. Thane, a thriving city in the state of Maharashtra, India, is one of the fastest growing cities in the country.
Investing in a property in a such a city is a good and sensible decision. But the real estate prices are often high in metropolitan areas. In such cases, Home Loans are a must to buy houses.
A Home Loan in Thane makes it financially easier to buy a house in the city. A lot goes on while applying for Home Loans in India. Housing loans and plans include various eligibility factors like monthly income, financial assets, and expenses—that have to be met before the bank sanctions the loan.
What are the Factors that Determine Home Loan Eligibility?
Age is a common factor taken into consideration for any kind of policy. When it comes to availing a Home Loan in India, age is a realistic aspect. The younger you are, the more capable you are to repay the Housing Loan amount—as there are still many years left for your retirement.
Age of the Property
Another major factor that determines your eligibility for having issued a housing loan is your property. Based on the age, location, and nature of your property, your Home Loan interest will be influenced. After a thorough inspection, your lender will decide on your eligibility for a Home Loan.
The older the property, more independent evaluations will be carried out. So avoid old properties since they might be evaluated for structural damages—which will delay the process of acquiring a Home Loan.
Your Credit Score
CIBIL, a short form for Credit Information Bureau India Limited, is India’s top credit information company—that maintains records of credit activities like loans and credit cards of individuals and other companies. Lenders and bank officials assess your credit history or your CIBIL score to understand your credit activity before approving your Housing Loan.
In the presence of any outstanding credit or pre-existing loans, your credit score will be considered poor. This might affect your application for a housing loan.
The major component of any loan is your monthly income. Your income depends on your profession and the tenure of your work. Your lender will be particular in ensuring that your profession provides you with a steady income.
In order to prove your steady income, you need to provide your salary pay slip, after which the Home Loan EMI calculator is used to decide on the type of housing loan for you. Frequent job changes reflect poorly on your statement and make it difficult to acquire a Home Loan.
Number of Dependents
Your financial dependents have to be gone through before your lender or your bank decides on granting a House Loan. The number of dependents like kids, retired parents, spouse, and other expenses will be used to judge your capacity to repay the amount and your Home Loan eligibility.
Nature of your Co-Applicants
In case of having other applicants along with you for a Home Loan, it is necessary to get to know your co-applicants financially. Your Home Loan eligibility will significantly increase if both of your financial grounds are strong and secure.
Proximity of your Property
Distance also plays a major role in deciding the eligibility of having a Home Loan. Banks and lenders are concerned with the distance of your property from their financing branch while sanctioning a Home Loan.
How to Calculate your Home Loan Eligibility?
Several banks, financial companies, online financial platforms have introduced the Home Loan eligibility calculator and Home Loan EMI calculator to calculate the tenure of the loan, the Home Loan interest rates, and the amount you qualify for.
This is to give you an approximate estimate of the Home Loan you can expect. Depending on your income and repayment capacity, it lets you understand your Housing Loan eligibility.
For young working professionals, owning a house is a pretty big step in a city like Thane. When it comes to acquiring a Housing Loan in India, one has to go through the possibility of being eligible to apply and repay the loan.
One has to be honest and careful while assessing their financial assets and then should determine on having a Housing Loan for their dream house.