Purchasing your dream house can be one of the most frustrating and cumbersome activities at the same time. You may be struggling with some financial issues beyond the difficulty of the process of buying the best house in the right neighbourhood, such as how to get the quicker sanction of a home loan or what are the steps involved in the approval process for home loans. Filling the home loan application correctly is also important.
Much of these questions can be overcome with a little homework at the start.
This write-up sheds light on some tips that homebuyers can incorporate to ensure quick sanction of a home loan.
Verify your Credit or Cibil score
When it comes to having a loan accepted quickly, the credit score is one of the most significant variables playing a significant role in the process. You must take necessary actions to improve your credit score by paying your bills timely and keep your credit card balances low. While applying through MyLoanCare, it is vital to make your score as high as possible. This will help you in getting the best deal in the market.
Assess your financial situation
For the approval of your home loan application, understanding your repayment potential is highly important. If you can pay back the loan amount without any extra financial burden or not, it is pertinent to take a careful look at your finances. Paying the EMIs on schedule is one of the most prominent conditions of fulfilling a home loan contract.
Raise enough money to make a sizeable down payment
Constructing a corpus from your savings is the easiest way to raise funds for your down payment. Start a budget, monitor your monthly expenses and make a deliberate effort to reduce your shopping impulses and excessive spending. People who have not saved or arranged funds properly for the down payment sometimes end up as poor borrowers or all their savings are drained.
Know the eligibility of your home loan beforehand
Before the loan application is sanctioned, some clear conditions or considerations must be taken care of. Therefore to prevent any mistakes or inconsistencies before you submit, it is strongly advisable to review your credit report beforehand. For more eligibility information, you can use our online available loan eligibility calculator for a smooth home buying experience and avoid getting the application rejected.
Know the Basics of the Loan and read the fine print
Ensure that all the supporting documentation is present such that your lender approves the loan. Bear in mind that the home loan approval process can be lengthy and time taking. Therefore it would be better to have patience and thorough in rounding out the home loan application process. It would help you to stay away from undue delays by always remembering to do your homework beforehand.
Use the Co-applicant Feature for a better offer
While applying for a loan, anyone who is an equal partner in the application is the co-applicant. You should make your parent or wife/husband a co-applicant because there are substantially higher odds of having your application accepted quicker with a co-applicant, especially if your co-applicant also earns a substantial income. Note that all owners of property need to be co-applicants, but not all co-applicants need to be owners of the property. This will help the lender know that even though your income alone does not count you as a qualified borrower, you are still capable of paying their loan back on time.
Fill in your application form and submit supporting documents carefully
When preparing to avail a home loan, it is essential to be aware of the paperwork needed for the request. When filling out the application form, applicants must be extra vigilant. Ensure that there are no concealed provisions that might later catch you off-guard. Read the fine print carefully. Avoid making errors with the numbers in your portfolio and salary data.
Applicants are required to submit the following required documentation before applying for a home loan:
- Duly filled application form
- For proof of identity, Pan card, election ID card or a Passport. If there are discrepancies in the details, make sure to correct it before applying.
- For proof of address, documents such as a bill of electricity, Aadhar card, ration card
- Documents for income proof
- Latest Bank statement
Conclusion: Before applying for a home loan, all applicants must share all of the details related to their application during the home loan application period. To avoid rejection of a Home Loan application, applicants must be fully informed about the specifics before applying.