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Buying a home is the biggest investment for most people in India. Nevertheless, several of them ask, “What is the best time to invest in a home?”. In the early days, people thought about buying a house when they were 45 years or above and their finances stabilized. Situations have changed today, and people have banks offering home loans at the most competitive interest rates. Moreover, they are also aware of the long tenure, easy EMIs and tax benefits, which induce them to enter into a long-term financial commitment.
Though home loans are easily available with several benefits such as the flexible repayment options, maximum funding up to 90 percent of the cost of the property, minimal documentation, etc., it is essential that you meet the home loan eligibility criteria. To ensure that you have your mortgage loan approved, you need to plan and prepare well. Here are some tips to get your home loan approved.
To buy a home, you need to do a thorough analysis of the prices of the property in the city you wish to live in. This will help you know how much money you could pay initially. It is advisable to plan early so that you can save enough to pay a higher down payment. This will not only help you to get your home loan approved but also acquire at a lower interest rate.
When it comes to evaluating your home loan eligibility, most lending banks check your credit score first. A credit or CIBIL score is a three-digit number, and is a reflection of your credit profile. Your past credit behaviour in the form of borrowings and repayments are shared by banks, which helps generate a score every time. Studying your credit report and score, your bank will know your repayment capability.
To avail instant home loans, you should maintain a good financial record, as well as a credit score of 750 and above. A credit score ranges between 300 and 900 points.
A considerable number of home loan application forms are rejected for want of supporting documents. A bank will never compromise on documentation, even if you satisfy other requirements. Therefore, gather and get ready the necessary documents to prove your identity, residential address and monthly income, as well as those related to the property you propose to buy. As for business persons or entrepreneurs, they have to submit documents related to their business. For more information, you can visit the IDFC First Bank website here.
The worst thing that can happen during the loan period is the loss or change of job. It will affect the repayment of the loan to a great extent. If you have your spouse working, it is better to opt for a joint loan, and stick to the job to avail the tax benefits.
Sometimes, the bank may doubt your repayment capability and for that reason, your loan application may get delayed. If you can have a co-applicant who also earns a sizable income. You can apply for a joint loan and club both the incomes to get your loan approved easily.
A lender may still need more documents for clarification, and may contact you to provide enough information. If you are not prompt in responding to them, it will delay the loan process or sometimes, lead to rejection of the application.
For a seamless loan process, it is important to plan the process to apply with the best bank for home loan. The above tips help you undergo the lengthy loan process without any difficulty.
To apply for a home loan from the IDFC First Bank, click here.
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