4 Steps to a Home Loan Pre-approval
Some people just don’t know much when it comes to getting a housing loan. Yes, there
are reports of jaw-dropping Home Loan interest rates and incredibly lower home rates
that they hear and jump in to have their own homes.
However, they are disappointed when lenders reject their Home Loan application
because they don’t match up to their Home Loan eligibility criteria. That’s where getting
enough knowledge is the key, and one can take some vital steps to get pre-approved
for a housing loan and avoid future heartache. Let’ discuss some steps right away!
1. Know your CIBIL score
It does not take much time to pull out your CIBIL score and know if you have a healthy
score to apply for a Home Loan or not. However, some borrowers do not know their
credit score and directly submits their Home Loan application to lenders assuming it to be strong. However, when lenders find their credit scores not suitable, they reject the Home Loan application. Thus, to avoid issues, it is always better to know your credit score. If you know your score and find it low, take measures such as paying all debts on time to improve it.
2. Save for down payment
Some lenders may offer you low Home Loan interest rates, but you may cough up some cash to arrange or put some down payment. If you don’t have the cash for down payment, your Home Loan application may not approve. As a result, when you know that you are applying for a housing loan, it would be better to take all efforts to make way for the down payment. Want to know about the Home Loan interest rates? You can bring into play a Home Loan EMI calculator available on a lender’s website to calculate exact EMIs that you will pay and on what Home Loan interest rates.
3. Stay at your current job
I know a couple who quit their job just five days before they were to finalize a Home
Loan. Last that I could hear from them was, they could not close the deal, and a great
home option slipped. That’s why staying put with your current employer is vital if you are closing a Home Loan deal. People who switch jobs frequently are not considered a safe bet by lenders.
4. Pay off all your old debts and avoid new
Having a clear and sound repayment history also helps in moving your loan for home
towards the approval. Try to repay all credit cards’ EMIs and existing loan EMIs before applying for a Home Loan and no matter how tempting an offer may be, avoid taking new debts to enhance your Home Loan approval prospects.
The Bottom Line
Although there may be many builders developing societies next to you and many
lenders bombarding your email inbox with tempting Home Loan offers, if you don’t have Home Loan eligibility, they won’t matter to you. Try to implement the discussed aspects to get pre-approved Home loan in future without any hassles.