Home loan eligibility includes predefined criteria banks use to assess an applicant’s creditworthiness looking forward to availing and repaying a specific loan amount. The eligibility for a home loan depends on several factors, such as age, income, credit score, credit history, financial status and obligations, and more.
A housing loan eligibility calculator is a good way to check your eligibility for a home loan. A calculator uses your income, tenure, and pre-existing debts to assess your eligibility. Just input your details in the calculator to assess your eligibility. It will help you make an informed decision and prevent your application from being rejected, negatively affecting your credit score.
How to calculate your home loan eligibility?
You can assess your check home loan eligibility by considering factors like age, monthly income, credit score, current loan obligations, and years left for retirement. Simultaneously, you can use a housing loan eligibility calculator to calculate your eligibility. Within seconds you will get the total loan amount and your eligibility.
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Factors that impact your housing loan eligibility
- Monthly income: Your monthly income is a major aspect of your home loan application. It helps lenders decide the aggregate loan amount that you can afford. You are eligible for a low loan if you have a low income.
- Age: You can choose a long loan period if you’re young. If you’re old, you should go for a short loan tenure. Remember, the longer the tenure, the lower the interest rate, and the more your EMI is reduced.
- Credit history: A good credit history means you have a history of clearing your dues on time, and you enjoy a good financial condition. A good credit history enhances your probability of getting an approved house loan.
- Current loan obligations: Your loan obligations affect your housing loan eligibility. They are treated as regular monthly expenses which impact your loan repayment ability.
- Regulatory needs: The National Housing Banks has a restriction on the maximum loan amount which can be given, depending on your residence cost. The expensive houses in the market have a lower maximum limit, and the low-priced houses have a higher limit.
Whether it is a house or a flat, you’re bound to pay the GST on the property. The government of India levies GST on constructed or under-construction projects accordingly. However, if you’re purchasing an already completed project, you don’t have to pay GST on flat purchase .In simple words, a completed project is one which enjoys a completed certification from a renowned authority.
How to increase your home loan eligibility?
- Apply together: You can purchase a flat or house together with your earning spouse. It will enhance your eligibility to a great extent. The joint application will enhance income, a major criterion for loan eligibility.
- Close other loans: If you have current loan obligations, it is suggested to pre-pay them before applying for a home loan. It will bring a larger surplus in your account to channel toward your housing loan EMI and enhance your eligibility.
You can qualify for a home loan once you meet the specific housing loan eligibility criteria. Hence, using the right parameters when calculating home loan on the housing loan calculator is essential. It saves you from the hassle of visiting the bank to know your eligibility and helps you plan your repayment schedule accordingly.