In our country, there are countless people who often dream of owning a home but only an army of people can turn this dream into reality due to soaring land prices. However, the rising popularity of home loans has turned many individuals towards availing such amazing financing alternative.

Well, it is not like a piece of cake to “Apply For Home Loan“ these days. There are several lending institutions such as ShubhBank who offers best home loans but every lender has a unique set of eligibility criteria which a borrower has to fulfill. In case, you don’t meet such criteria then you need to sharp your loan eligibility to qualify the home loan.

In this article, we will guide you through different ways to boost your home loan eligibility:

✓ Opt for longer tenure: Loan tenure plays a vital role in determining your eligibility for home loan because longer repayment period leads to smaller EMIs. It will be easier to repay the smaller debts as they don’t put strain on your finances. A longer tenure provides you repayment flexibility to stay within your budget as well as offers additional tax benefits.

✓ Clear all your debts: Every lender is cautious of lending to a borrower with existing debts as multiple borrowing will risk your repayment capacity for paying dues in future. Therefore, make sure to pay all your existing debts before availing a home loan because clearing all your dues makes you credible borrower to access a home loan with ease.

✓ Improve your credit history: A good credit history can be a key to unlock a home loan with low interest rate. Your credit rating is based upon various factors such as debt repayment history, transaction in older accounts and outstanding dues.

If you have a poor credit history then there will higher chances of getting a rejection on home loan. So, clear all your previous loan defaults and improve your credit rating to avoid any rejection.

✓ Mention all your income sources: It’s a need of an hour to declare all your income sources while applying for home loan.

Many borrowers believe that lender only look for primary source of income but more you provide the sources of income to lender, more will be the chances to get approval on your home loan application. Moreover, having additional source of income will also help you to acquire higher loan amount.

✓ High down-payment: The LTV ratio for home loan provided by any lender is up to 80% of the total market price of property but the entire percentage of loan money depends upon your credit worthiness. When you “Apply For Home Loan Online“ or offline, try to increase your down payment as it will directly increase your home loan eligibility lowering a credit risk for lender.

Hence, the loan approval on home loan completely depends upon your repayment capacity. If the lender is confident about your credit worthiness then the loan amount is disbursed quickly to your bank account. At the end, we can say that by following above mentioned ways, you will surely boost your eligibility for home loan.