With the rapid development of India, the income of average Indian family is increasing as well. There has been a continuous increase in the desire to own a new house as well which has lead the property shoot at sky-rocketing prices. Whether its metropolitan or rural cities the impact has been evenly distributed everywhere. It has become almost impossible to buy a new property with stipulated savings people have after years of hard work.
Therefore, home loans play a major role in individual’s home buying decision and the business has witnessed an unmatched growth in recent years.
Since, it’s an asset for life time here is few tips that will help you get your home loans approved:
Dedication to Save
Lenders will also like to invite customers who have dedication to save money. They ensure that you’re a regular saver. So make sure you have healthy funds saved in your account towards “house deposit” in the reference field to show. Keep it clean to show the lenders how seriously you have been planning to save money towards buying your new home!
Credit Card Debts
Since, people have good salary or business they often have a habit of splurging money though credit cards. However, there is a credit team who monitors your each and every transaction, your clearance of debt based on which a credit score is generated. So, if your credit score is not so good, then improve it by making payments on time and clear out the credit card debts. A good credit score will help you to impress the bankers or private lenders and also to negotiate for low interest rate deals.
Job or business stability
In order to get your home loans approved, you should have a steady employment or business. Lenders verify this because they need to have some assurance that you have a stable source of income and you are in a position to repay the monthly installments on time. If not, then bank or private lenders will always be concerned about your steady income source and it could lead to rejection of your application. Stable job or business once again proves a viable point for better interest rates, low processing fees and improving your relationship with lenders.
Most banks or private lenders are very strict about the property documents and their approvals. They are just not willing to finance any project out of their parameters. So, always tell the builder to produce their documents beforehand, take an opinion from a housing loan expert about the documents along with you and then approach relevant bank or private finance firm.
Do thorough research
Most people in their quest to buy home just go for the first bank or private finance company they visit for loan approval. However, instead it’s better to do a thorough research online about the company background, terms and conditions, interest rates offered, processing fee, loan tenure, the repayment options and other important things related to loan processing or application. Getting thorough with the topic helps you to understand the loan process and lets you make easy application online.
Getting your mortgage approved is definitely not a cakewalk. However, by following these tips, you can improve the chances of getting your loan being approved. May you acquire your dream home sooner!