Things Which Are Considered to Determine Your Home Loan Eligibility
The most important aspect in the process of applying for a home loan and successfully getting it is to apply after understanding the home loan eligibility criteria and making sure you are not failing on any of them. Since the popularity of home loans is only going to increase as suggested by a report, which also reported a 15% increase in home credit for Housing Finance Corporations in 2018.
The 5 crucial home loan eligibility criteria are:
a) Down Payment: A lender cannot finance more than 90% of the property's value. So the minimum 10% has to come from you. On this note, the more down payment you can manage the lower will be the loan amount.
b) Credit Score: A credit score is a numeric representation of the creditworthiness of an individual. It ranges from 300 to 900. A score of 700 and above is considered to be good.
c) FOIR: It is the fixed obligation to income ratio. It is the ratio of your fixed expenses against your net income. The lower the ratio higher the spare income you will have to pay the home loan EMIs.
d) Age: The tenure for a home loan is long; thus, the age of the borrower also becomes essential. The age criteria range between 18-70 years, where 70 is the age when your home loan must be fully repaid.
e) Property Type: Apart from being residential property it should not be disputed, or a gram panchayat approved property. The property's builder should also have the license and other permissions required.
The 5 crucial home loan eligibility criteria are:
a) Down Payment: A lender cannot finance more than 90% of the property's value. So the minimum 10% has to come from you. On this note, the more down payment you can manage the lower will be the loan amount.
b) Credit Score: A credit score is a numeric representation of the creditworthiness of an individual. It ranges from 300 to 900. A score of 700 and above is considered to be good.
c) FOIR: It is the fixed obligation to income ratio. It is the ratio of your fixed expenses against your net income. The lower the ratio higher the spare income you will have to pay the home loan EMIs.
d) Age: The tenure for a home loan is long; thus, the age of the borrower also becomes essential. The age criteria range between 18-70 years, where 70 is the age when your home loan must be fully repaid.
e) Property Type: Apart from being residential property it should not be disputed, or a gram panchayat approved property. The property's builder should also have the license and other permissions required.
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