Five Factors That Are Crucial For You To Get A Housing Loan

Posted by Liity Jose on July 23rd, 2018

Taking a home loan is a big step for anyone. Applying for a home loan in itself is a very tedious and long process. Even a small mistake on the part of the loan seeker can end up in their loan getting rejected.

There are many do’s and don’ts that one must follow when applying for home loans to ensure quick approval. Here’s a quick guide that will help you create the ideal application.

1. Credit Score: This is perhaps the most crucial factor that is taken into consideration while approving loans and deciding on housing loan interest rates. Your credit score depends on a loan of things like your spending history, your past borrowing, and even your previously loan application. Missing even a single loan EMI payment can cause you to reduce your CIBIL score substantially.
2. Builders and banks: Certain builders have tie ups with certain banks for home loans. If the builder you’re seeking a property from, is not in a tie up with your bank or isn’t approved by your bank, approval of your loan may take a long time or may not happen at all. It’s always a good idea to apply for loan with a bank that your builder has a type up with. You should also check whether the project you’re buying property in is approved by the bank, because even if the builder is approved by a bank, all his projects may not be.
3. Resale property: In the case of resale property, you should get the property professionally valuated, before you settle on a price with the seller. This is because, if the buyer and seller mutually decide on a price for a property and the buyer seeks a loan, the bank or loan providers re-evaluate the price of the property and if the value is lower that the price decided by the buyer and seller, the housing loan stands a chance to be rejected.
4. Age: Age is another important factor that is taken into consideration when approving loans. It indicates your earning capacity. If you’re nearing the age of retirement, there are chances that your loan may not get approved. 
5. Jobs and stability: Your job stability is extremely important when you apply for a loan. If you have a history of jumping jobs or frequently change organizations, it indicates that your income is not stable. Some banks even insist that you need to be employed with a concern for at least three years to be eligible for a home loan.