- How Much Home Loan Can I Get?
- Read here the factors that decide your home loan amount
The eligible home loan amount usually tends to change from one individual to another. Also, it depends on a lot of important factors. Anyone who looks to opt for a home loan would want to know the eligible home loan amount before applying. But it is not as simple as it seems. Any lender will look into several factors before deciding the final loan amount for you. Also, there is this home loan eligibility calculator by which you can get to know the home loan amount you could possibly get.
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Factors That Affect Your Eligible Home Loan Amount
The eligible home loan amount usually changes from one lender to another depending on what criteria they set for individuals to meet. The criteria include monthly income, property value, credit history, etc. Read below to know these criteria in detail.
This is the most important factor in deciding your eligible amount. Let us tell you why? When you take a home loan, you repay it via Equated Monthly Installment (EMI). And you will be paying this amount from your monthly income only. So with a low monthly income, you will not be able to pay a higher EMI amount.
That’s why the lender assesses your monthly income before finalizing the loan amount. Chances of getting a higher loan amount with a higher monthly income are always greater. A lender will always ensure that you will be able to pay the monthly installments without any delay. Knowing the monthly salary of an applicant helps in knowing it.
The eligible loan amount will also depend on the market value of the property you want to buy. You could get a loan upto75%- 90% of the property value.
The home loan amount also depends on the type of occupation you have. A home loan can be availed by both salaried and self-employed individuals. That’s why lenders sometimes decide the eligible loan amount after deciding the type of employment you have.
Your eligible loan amount will also depend on the existing obligations you have such as credit card loan, personal loan EMIs, or any other EMIs. The lender will take all these obligations into account before deciding on the loan amount. If you already have too many obligations, the chances of getting a higher loan amount are pretty low.
Your credit score also plays a huge role in getting you a higher home loan amount. Having a high credit score (700 or above) makes you a perfect candidate to get a higher amount as compared to an individual with a low credit score. This score gives lenders an idea about your debt management skills and creditworthiness.
How Can You use the Home Loan Eligibility Calculator to know the amount?
Now that you know all the factors that go on to decide the loan amount you could get, let us tell you about this amazing tool. With the help of it, you can easily know the loan amount that you could get. The tool is none other than the Home Loan Eligibility Calculator.
To use this, you only need a few details such as your Date of birth, Residing City, Net Monthly Salary, Required Tenure, Any other Monthly Income (if any), and current EMIs or other obligations. As soon as you fill all of them in the calculator, you will get the exact eligible loan amount. Using this tool is so easy that anyone can know the home loan amount that he/she is eligible for.