Well, the moment you think of your home loan, you go down into deep anxiety. Right! I know moving in a home is a moment of joy, but as soon as you settle down, you realise your EMI is due (after 1 week). It’s high time; we should realise the importance of housing loan. By being wise, we can obtain high returns in turn of saving on interest- flow. That is why, you should make sure, and avail the best and quickest home loan plan with the most reasonable rate of interest.
Here are ways that would qualify you for your home loan faster.
1. Fair Employment history discussed
Every loan lender would make sure his applicant is currently employed and has a decent history as far as employment is concerned. For the first time, a borrower should have a clear and neat employment history for a year, with full time employment record. Certain banks differ in their time duration, according to the amount of loan the applicant has applied.
2. Present Income level
The salary slip of the applicant decides the sum of income the bank will grant him for his loan. The income is decided by his present debts, i.e. credit cards or personal loans. In consideration to his existing limit, the bank will decide his loan limit.
3. Good Credit history
Every lender will make sure his candidate do not posses any adverse items on his/her credit report. If the applicant has a poor history of bankruptcies or court judgements, the bank may not pass the loan or approve his loan. Each applicant is dealt with a lot of terms and procedures if the applicant has a valid reason for his history, only then the loan will be passed.
4. Fair saving history
A first time borrower will have to illustrate his capacity of his past savings. Mostly, the bank will ask you to show your past 3-6 months of your salary slip, or account statements depicting your regular savings. An accretion of minimum 5 % of the purchase price of the property is being considered. This depicts that the borrower is capable of maintaining a discipline in financial matters.
5. Common sense
Some the banks also consider its candidates on their individual merits. This also means that if an applicant has a fair history in the criteria mentioned above, his/her loan still may be rejected if there is no commercial appeal. If the bank has certain doubt about his applicant’s accuracy over the loan, which he/she is sanctioned for, the bank might not approve his/her loan.
If a loan, which you are trying for, does get approved in a bank, do not worry; some other bank may approve it. If a bank refuses to grant you loan, it’s not because of your reflection; the rejection may be due to the bank’s terms and policies.