How to improve home loan eligibility - By: Habibulla

Many people needs a home loan to purchase their dream home. To avail home loan, the eligibility is very important and it depends upon the various factors. A lender has its own parameters and criteria to determine the eligibility of home loan.

Generally, home loan eligibility is very much depend on the borrowers income. The more earning enables to get more from loan amount. But, this is not ultimate solution to for home loan eligibility. If you need home loan with enough eligibility, there are some methods that you can use to enhance the availability of home loan from the lender

1.Home loan eligibility is much depends on the down payment. Try to pay maximum down payment for the loan, because it will add confidence in your lending company.

2.Opt for longer home loan tenure. It enables you to get a higher loan for the same income level.

3.Clubbing income is the another way to enhance loan eligibility. You can club your income with your spouse, children, father or mother and jointly apply for the home loan. This means your monthly income increases and lender consider you are eligible for higher loan amount.

4.If you have car loan or personal loan, the repayment record will be consider to determine your home loan eligibility. A good repayment record will prove favorable in deciding your repayment capacity for the loan.

5.The repayment option is also helpful to improve your loan eligibility. Step Up Repayment Facility is good source to avail higher loan amount. In this scheme your installment keeps increasing at periodic intervals thereby enhancing your loan eligibility. If you are close to the retirement age, opt for flexible installment plan. In this scheme, the lender consider your alternate source of income to enhance your loan eligibility.

6.There is another option available. You can include co-applicant to the loan whose income is also considered for the loan eligibility calculation. It also helps from any tax implications and raise the fund for your home.

About the Author

Habibulla Antule is a financial advisor and consultant and have provided his expertise to many financial institutions for loans and insurance

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