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14-Apr-2023 | Home Loan
Buying a home is a decision that comes with myriad benefits. You not only get a roof over your head but also devise a good investment for the future. Taking a home loan is the perfect way to finance the construction or buying of your dream home. A housing loan helps you get on-time financial assistance with easy repayment options and competitive interest rates, also safeguarding your savings for future emergencies. You can easily pay the loan amount with monthly EMIs and get your dream home.
You might think, getting approval for a home loan might be a lengthy process, but no, it’s not. By following some simple steps, you can avail a home loan instantly. So let’s scroll down to read the best home loan tips–
Top Six Home Loan Tips
Getting your perfect dream home is surely significant, but so getting the perfect housing loan. It is a long-term commitment that needs to be correct and accurate. Here are some of the best home loan tips that can help you get easy and fast approval:
· Keep Your Documents Ready
The first and foremost requirement when you take a home loan is to keep all the documents ready and up-to-date. The documents required for home loan comprise bank account statements, ITRs, salary slips, identity proof, property registration papers, and others. With improved digitalization, now you can apply online for home loan or can visit the nearest branch and apply for a loan. If the documents are ready, they can help speed up the home loan process.
· Declaration of Added Sources of Income
When you apply for a home loan, it is recommended that you must declare the additional sources of income as it helps the lenders to decide your repaying capacity more accurately. Also, it plays a significant role in increasing your home loan eligibility. There can be various additional sources of income such as part-time business income, rental income, and many others. More sources of income reflect good financial health that may help you get a higher loan amount. With a high inflow of income through multiple sources, the repayment capacity enhances and as a result, it helps to boost FOIR.
· Higher Down Payment
One of the most significant home loan tips that can help you get rapid approval for your loan application is to keep the funds ready for a higher down payment. Before you apply for a home loan, it is necessary that you plan your finances well and have a good amount of savings that you can use for paying the down payment. Financial institutions usually sanction a loan amount of up to 70% – 80% of the property value depending upon certain factors. Thus, the remaining amount needs to be paid by you. It is advised that one should always keep the down payment percentage as high as possible as it not only helps to avoid the excessive interest payout but also increase the chances for rapid home loan approval.
· Choose the Lender Wisely
One of the potential aspects that need to be taken care of is choosing the lender wisely. If you are a first-time borrower then it becomes difficult for you to decide which lender, bank, HFC, or NBFC would be the correct choice for you, who can help you get the best customer service, competitive interest rates, and easy loan processing. For this, it is recommended to avail home loan from an HFC as it has multifold benefits of taking home loan from a housing finance corporation. HFCs have successfully developed their niche in providing affordable and easy home loans and also maximum of HFCs have their own in-house models for evaluating the creditworthiness and repaying capacity of the borrowers.
Aavas Financiers is one of the leading names in providing affordable home loans to a large customer base across the rural and semi-urban sectors. The company has been awarded with the Best Non-Banking Financial Company (NBFC) in FE India's Best Banks Awards 2022 and also felicitated with Economics Times Best BFSI brands for 2023. Also, there are multifold benefits associated with Aavas home loans such as a wide and integrated branch network, easy accessibility, flexible repayment methods, quick approvals, hundred percent transparency, and tailor-made solutions for its customers. All such qualities make Aavas unique and one of the best home loan providers in India.
· Use Home Loan Eligibility Calculator
Once you have selected the lender, now you should know the home loan eligibility requirements for quick approvals. There are multiple factors that play a vital role in determining whether you are eligible for a home loan or not such as credit history, age, monthly fixed obligations, income, and many more. You can use the free online eligibility calculator to check home loan eligibility and make sure that you meet all the eligibility requirements before applying for a home loan.
· Maintain a Good Credit Score
‘If you want to take a home loan, always maintain a good credit score’
You might have heard this statement from different people at different times. The fact is, it is highly crucial to have a good credit score to get a home loan. A credit score is a primary aspect every lender looks into before further considering the loan application. A good credit score ranges between 750-900, which depicts your on-time payment of credit card dues, current EMIs, and other fixed monthly obligations. You can check online free credit score and practice ways that can help boost your credit score.
Also read – What should be the ideal credit score to get a home loan?
If you are looking to avail a home loan and want to facilitate the loan processing, then you should follow the above-mentioned home loan tips for easy and quick approval. You must start with improving your credit score as this factor holds maximum importance while applying for a home loan.