A majority of Indians who are willing to buy an own home can’t do that without availing a home loan. But getting the loan approval is not that easy.
Many people do not know what all it takes to get a housing loan approval from a lender. Yes, if you are short of the home loan eligibility, lenders can reject your house loan application.
To clear your doubts about the factors that a lender may consider before approving housing loan, this post is created to help you out. Here we go!
Your CIBIL Score
The first thing that a lender assesses while approving a housing loan application by a prospective home buyer is its Credit or CIBIL Score. If your CIBIL Score is 750+ or more out of 900, you can be sure that a lender may approve a house loan quick. To ensure that you have strong CIBIL Score, you need to pay off all your existing loan EMIs and credit card outstanding on time. Also, one needs to avoid applying for too many home loan applications at a time. Doing that will reduce the score bit by bit as lenders pull it out every time you request for a housing loan.
Lenders also give preferences to people who have a stable job so that by approving such loan applications, they don’t face loan repayment default issues. Generally, banks and non-banking finance companies (NBFCs) prefer to give home loans to employees working for the Government, PSU and reputed private companies. If you have been working for at least 3 years, lenders can approve your loan request.
Age is another criterion that lenders consider while approving a home loan request. People who are in the age group of 23-58 years are preferred as they are considered financially stable. They also have decent working years left to repay their loans. On the other hand, people nearing 60 years are seen as a risk by lenders as they don’t have working years left to repay the loan. Thus, if you are a retired person and wanted to apply for a home loan, you can apply with a co-applicant in his/her 30s/40s.
If you have managed to make timely repayments for your earlier availed loans and credit card outstanding, lenders can also approve your home loan request. Thus, if you have a decent repayment history, you can be sure to get a home loan approval without issues.
Relationship with the Bank
The older you have a relationship with your bank; the better it is if you are applying for a home loan. Banks value their old customers as they are aware of their financial history. A bank customer for 5-10 years has a higher probability of getting approval at a lower home loan interest rate.
The Bottom Line
You are now well-versed with what it takes a lender/bank to approve your home loan application quickly. You can now follow the discussed tips and apply for a home loan to get quick a loan approval for a lower interest rates. Good luck!