You take a home loan for buying a readymade house or construct one on a plot of land. You can also avail of a loan for the renovation of an existing house. Before you apply for a loan of this kind, you will have to calculate your eligibility for a home loan. This eligibility mainly depends on your repayment capacity which is related to your monthly income that is surplus. Other factors that matter include spouse’s income, assets, your existing liabilities and the stability of your current income.
Easy Ways To Calculate Eligibility For A Home Loan
Buying of a house entails a lot of preparation on the financial and practical fronts. If you are looking to buy flats for sale in Hyderabad, those with a family and good incomes generally end up applying for a home loan for want of availability of the full amount to be paid for the purchase of the home.
Applying for a home loan is a tedious job by itself and the worst part is that the loan application can be rejected by the financial institution for more reason than one. Therefore, it is a good idea to be aware of the factors to be considered and calculate your home loan eligibility before you proceed to apply for one.
Some of the criteria that a financial institution looks into before sanctioning a loan can be listed as follows:
- Stability of Employment: The applicant should be employed for a minimum period of two years on the current job. In case the applicant is self-employed, the applicant should have records of total income for a minimum of 5 years.
- Age: individuals in the age group of 20 to 60 years are eligible to apply for a home loan.
- Credit Rating: The applicant should have a good credit rating to easily get a home loan. Any current outstanding loan of the applicant dims the chances of receiving a home loan.
- Place of Employment: Applicants working for large public-sector organizations, corporations or multinational organizations have a brighter chance of loan approval.
- Financial Status: In case the applicant’s financial records indicate the stability of income, then it is easier for the loan to get approved and it is also true that this influences the rate of interest, tenure and EMI positively.
The next step is to calculate eligibility for a home loan. Any home loan eligibility calculator generally asks you to input 5 standard details such as service tenure, loan amount requested for, rate of interest, monthly salary drawn, and the monthly EMIs.
In case you want to buy apartments for sale in Hyderabad, this is what you need to do to check your eligibility for a home loan.
Search online for a home loan eligibility calculator. Fill in all the basic details about your current financial status and income details.
Once the details are processed, the calculator presents you with an EMI figure.
At this stage, it is a good idea to try and decrease the amount if possible. This will help to reduce the burden of cash outflows on you. However, you should take care to see that this EMI amount is not increased.
Next, the applicant can enter the number of years in which they intend to repay the loan back. The applicant can also feed in the rate of interest against the requested amount.
Finally, the calculator displays the suitable loan amount that you can avail of from the bank.
The easiest way to check eligibility for a home loan is to make use of an online loan eligibility calculator. One of the main reasons for using this tool is to find out your eligibility fast and as easily as possible.