A beautiful home is a personal asset that everyone has dreamt of owning for a long time. If you are planning to purchase a new house, these are the two things that you will consider instantly a pretty home and about applying for a home loan. However, what matters is qualifying for the home loan. It is most important for the lenders to analyze your repayment ability, which is essentially evaluated based on your earnings, expenses, savings, work profile, financial capability, and repayment history of loans and other dues. A nasty credit score and therefore the ghosts from the past, i.e. your credit debts or poor payment history can pose a drag while qualifying for a home equity credit. Here are 4 important tips to see before apply home loan online:

• Your Credit score: – A credit score is like an inspiration that can be a foundation for your easy home loan application process. This score depends on how consistent you are good at paying your past EMI and loans. The higher the credit score, the higher the chance of the loan getting approved. And also one can expect the best rate of interest on the home loan as a bonus. A trusted bank or financial institution will make a report on your Credit score. Ensure you check your credit score at least six months or a year before you “Apply For Home Loan“.

• Required Documents for a home loan: – Before you go and apply for a home loan, it is necessary documents required and ensures they are available before you approach a bank or financial institution.
1. Pan card or Aadhaar card to verify your identity.
2. Bank statements for at least 12 months. Make sure you maintain a reasonable balance in this account over the past 6 months.
3. Last 3 months salary slips.
4. Income Tax Returns for the past year or two years.

• Consider you’re Budget, down payment and EMI: – Define your budget for buying a home, how much money you can consider for the down payment, and how much loan home would you require. Mostly you will get 80% of the value the property as a home loan if your income seems sufficient. Calculate your EMI range you are comfortable with, as that will help you to decide the tenure of the loan. You can use online EMI calculators.

• Interest Rates of the loan amount: – The borrowers have to pay interest on the loan amount in a calculative way. It may vary from 6.70% to 6.95%. As the loan amount is reduced after some EMI, the amount of interest is also reduced. “Home Loan Interest Rates“ may vary from bank to bank. It also depends on RBI changes in interest rates. The buyers must have some processing fees during the transfer of an amount.

Taking all the above points into consideration, you can proceed to apply for the home loan. Thus it will improve your chances for a quick home loan approval.