When it comes to home loan, it would not be wrong to say that it is absolutely a boon for more than one reason. However, as far as eligibility is concerned then it is totally a different ballgame. Yes, being eligible for a home loan is not at all an easy thing. In order to make you eligible for a loan, the banks consider your assets, income and current liabilities. However, if your mortgage requirement is quite higher than the loan amount you are eligible for, with just few changes you can increase your eligibility.
Here are few tips that can help in increasing your home loan eligibility
Increase Your Loan Tenure: Once you increase your home loan tenure, your eligibility for loan can easily be increased. But, one thing that you should keep in mind is the fact that banks do not increase your loan tenure beyond 30 years.
Pay Your Existing Loans: To increase your home loan eligibility, it is absolutely important to clear your existing credit card loans or personal loans. If you are still repaying your existing loans, it is clearly a big NO for you to get the eligibility. All you need to do is just pay your existing loans or credit card payments, close those accounts, get the no-due certificate and make sure that it is updated in your current credit score of CIBIL.
Rental Income: If you have a house in your hometown that is still empty, all you need to do is-give it on lease. Yes, the rent that you will get from this house can be your additional source of income which will ultimately help in enhancing your home loan value.
Consider Step Up Loans: When it comes to step up loans, they are a great medium to increase your loan eligibility, especially for those who are in such professions in which one struggles at early stage. But for them, the possibility of getting the good rewards is quite higher as they can establish themselves as a CA or doctor. Under this scheme, in the initial years, the banks are ready to offer you home loan at lower EMIs, and your EMI gradually increases once you start repaying your loan amount.
Income of Spouse: If your husband or wife is also earning, it would be great to apply the joint application for a home loan. This thing will automatically help in increasing your loan eligibility tremendously. Not only this, if your spouse is also an earning member, the liability of repaying the loan amount is left on both.
Variable Pay: To increase your eligibility, it is important for you to keep an eye on the variable pay or perks you earn on a monthly or yearly basis as a part of your job. With the help of doing so, the banks will consider this record of yours when they calculate your loan eligibility.
Take Your Time: You need to increase your CIBIL score, before you apply for a home loan. Take your time and look for the errors and try to have a clean CIBIL report. Always keep in mind not to apply for a loan with many lenders so as to avail the loan quickly. If you have a good CIBIL score, the banks will welcome you with open arms to provide you a loan at competent interest rates.