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Finally, after a lot of thought, you have made up your mind to buy your own house. Property prices are constantly skyrocketing and you also understand very well that the real estate sector has almost no chance of getting stable. If you don’t buy a home now, it just means that you will end up paying a higher price for the same property later. Buying a home is indeed a wise decision — as your home will provide you social and economic security as well as help you save money through tax benefits on home loans. You have deposited the money for the down payment and now want your housing loan application to be approved quickly. In this article, we will look at some of the tips that will make the process of applying for a housing loan easier for you and get your application approved faster.
Some simple tips to help you get quick home loan approval
Want instant approval for your home loan application? So for this keep in mind the following things.
Make sure you have a great credit score
Credit score is a three-digit number between 300 and 900, which indicates the borrower’s willingness to repay the loan on time. A high credit score indicates that the borrower is willing to fulfill his obligation to repay the loan within the stipulated time frame. On the other hand, a low credit score indicates a careless attitude of the customer towards the loan and disinterest in paying the loan EMIs on time. Lending companies check the credit score of the applicant to assess the risk involved in approving the home loan application, and based on this the terms and conditions related to the loan are decided for them.
If you want your housing loan to be approved instantly, then for this you have to keep in mind that your credit score should be at least 750. The closer it is to 900, the better it is for you. Knowing your credit score is quite easy- one can apply for their credit report by visiting the official website of CIBIL, after which the credit score is sent to their e-mail ID. if you housing loan If you are thinking of opting for a credit card, then below are some things that can help you improve your credit score
● Make it a habit to pay all your EMIs and credit card bills before the due date. This will have a good effect on your credit score.
● Try to lower your credit utilization ratio. Never spend more than 30% of the total limit of your credit card.
● If you have taken more than one loan, try to repay the previous loan before applying for a new loan.
Know the home loan eligibility requirements of the lender
The conditions related to home loan eligibility are a bit tougher for each lending institution. This is very important, because it helps the lending institutions to know whether the borrower can easily repay the loan amount or not. For example, to avail a loan from certain lending institutions, the customer must be at least 25 years old and must have a steady source of income. Similarly, some of the lending institutions require customers to be in business continuously for at least 5 years or show 3 years of job experience in order to get a loan. If you also want your housing loan application to be approved quickly, then home loan eligibility See and apply only after fulfilling all the eligibility conditions. If there is any eligibility factor that you do not meet, then talk to the lending institution and explain to them why you are not able to meet these conditions. Remember that with a great credit score, the lender may choose to offer you a loan at its own discretion, even if you do not meet the eligibility criteria.
Try to repay the loan taken earlier
If you are thinking of applying for a home loan, then it is very important for you to understand the debt-to-income ratio, that is, the ratio of debt to income. Debt-to-income ratio shows what percentage of your total income is going to be spent on loan repayment. For example, if your gross income is Rs 1 lakh and you pay Rs 5,000 towards car loan EMI, Rs 7,000 towards personal loan EMI and Rs 8,000 towards credit card bill every month, then only your gross income 20% is being spent on loan repayment.
Most of the lending institutions refrain from giving loans to such customers, whose debt-to-income ratio is already more than 40%. If your debt-to-income ratio is more than 40% and you want faster approval of your housing loan application, reduce your debt by paying off a few loans.
keep all documents ready
The amount of home loan is huge, and the time limit for repaying it is also up to 30 years. Hence, the lending institutions are very careful to offer loans only to those who are capable of repaying the loan. On the other hand, customers also look for the right lender and try to get a loan amount that they can easily repay. Lending institutions minimize the risk involved in lending by thoroughly checking the applicant’s profile and income-related information. For this, different documents like KYC and income certificate are demanded from the customers. Lending institutions also check the property to make sure that the property the customer is planning to buy with the loan amount is not enmeshed in any kind of legal dispute. For this, property documents are also sought.
Applicants need to submit a variety of documents along with their home loan application. By preparing all the necessary documents before applying, customers can speed up the loan approval process. Information about the documents to be submitted along with the housing loan application is available on the website of all the lending institutions. Before starting the application process, customers should visit the website of the home loan institution and get information about all the required documents. To avoid hassles in the loan application process and get quick approval, keep all the required documents ready.
Select the right lending institution
Home loans are taken for a longer period. Therefore, you should take a loan from an institution that you can completely trust and who is ready to understand your problems. Consider all the aspects thoroughly before making up your mind to take a loan from any home loan institution, and make this loan journey easy.
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