Beyond Credit Scores: Factors Affecting Housing Loan Eligibility You Didn’t Know About

Housing loans are beneficial as they empower individuals to achieve homeownership, provide financial flexibility and potential tax advantages, and serve as a valuable long-term investment. You can check your loan eligibility with the help of a home loan eligibility calculator and can also get your EMI calculated from a loan app that you choose to take a loan from.

However, it is essential to carefully check the terms and conditions of the loan and ensure that it aligns with your financial goals and budget before committing to it. It has made life easy and convenient as consumers do not have to go to financial institutions to apply for a loan physically.

What is housing loan eligibility?

It refers to the criteria lenders use to assess whether an individual or a household qualifies for a housing loan. These eligibility criteria vary from one lender to another but are almost common that most lenders consider when evaluating an applicant’s eligibility for a housing loan.

What are the factors affecting its eligibility?

●    Income

Lenders mostly require borrowers to have a continuous and steady income source to repay the loan. Your income level, stability in your job, and employment history are crucial factors. The lending apps usually help you calculate your debt-to-income ratio to ensure you can comfortably manage the mortgage payments.

●    Employment history

You must have employment stability and a steady income. Consistent employment and a stable job history can be favorable for loan approval. These factors can be added to various loan app’s home loan eligibility calculator.

●    Token amount

Lenders usually require borrowers to make a down payment or give a token amount, which is supposed to be a per cent of your property’s value. The larger the down payment, the better your eligibility, and you may get better loan terms.

●    Age

You must be above a specific age limit before applying for a housing loan, as many lenders have a minimum and maximum age limit for applying for a loan.

●    Citizenship and other debts

Some lenders may have specific requirements regarding citizenship or residency status. When assessing your eligibility, they also consider your existing debts, such as credit card balances, auto loans, and personal loans. High levels of existing debt may affect your ability to qualify for a housing loan.

How do you check housing loan eligibility?

You can check your eligibility with the help of a calculator, as it is one of the easiest ways to determine eligibility for a home loan. Several factors are considered, such as monthly salary, repayment tenure, other sources of monthly income, and any other loan obligation and payable EMIs apart from other basic requirements.

You can also use an EMI calculator app to assess the amount of EMIs to be paid monthly and plan accordingly. These calculators help you compare and contrast different lenders and choose your most appropriate financial plan. They empower you to make informed budget decisions and help you understand the financial implications of taking a loan.

Which is the best EMI calculator app for checking housing loan eligibility?

I use the Bajaj Finserv app, which provides housing loan eligibility and EMI calculators. Their user interface is commendable and very helpful in navigating the borrowing procedure.

Conclusion

While it is important to maintain a good credit score, other factors mentioned above are equally important for loan approval. They ensure the borrowers are legitimate and qualified enough to take a loan.

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