Table of Contents
- Tips to get instant home loan approval
- Tip 1: Making a higher down payment
- Tip 2: Maintain a high CIBIL score
- Tip 3: Add a co-applicant
- Tip 4: Knowing financial conditions
- Home loan eligibility
- Documents required for a home loan
- Documents required for salaried applicants
- Documents required for self-employed applicants
To apply for a home loan, an applicant needs to keep certain pointers in mind. These pointers boost an applicant’s eligibility and help to get an instant home loan approval. Thus, apart from meeting eligibility, a prospective borrower can consider some tips mentioned below.
Tips to get instant home loan approval
Tip 1: Making a higher down payment
Higher down payment will help get instant approval on a home loan, as there are lesser chances of defaulting. Also, paying a higher down payment will allow lenders to disburse less money against the property, thus reducing the risk.
Tip 2: Maintain a high CIBIL score
Maintaining a high credit score proves a candidate’s creditworthiness. Thus, an applicant with a high CIBIL score attracts a lender, proving he/she has a disciplined loan payment history. Thus it is important to know how credit score determines EMI.
Also, a high credit score such as 750 and above will help fetch more loan amounts and lower an applicant’s home loan interest rate.
Tip 3: Add a co-applicant
Adding a co-applicant also boosts an applicant’s home loan eligibility. For example, an applicant with a low CIBIL score can consider adding a co-applicant with a high credit score, increasing his/her overall eligibility. Additionally, applicants with lower income can add a co-applicant and avail of the loan easily.
Tip 4: Knowing financial conditions
For a home loan approval, a lot of factors work in unison. For example, the property value, LTV ratio, income of an applicant and others. Thus, it is important to know all the conditions beforehand for a smooth application. Also, checking the EMIs, eligibility and documents required for a home loan will lower rejection chances.
Thus, for an applicant’s ease, details of home loan eligibility and documents are given below. Also, it must be noted that eligibility and documents vary with the lenders.
But, the general eligibility remains the same for all lenders when a prospective borrower applies for a home loan.
Home loan eligibility
- Applicants should be citizens of India.
- They should be between 23 – 70 years of age.
- They should have a good CIBIL score of at least 750.
- Applicants should have a minimum salary of Rs.25,000.
- Also, they should have a minimum experience of 3 years.
- Self-employed applicants need to prove their business existence of more than 5 years.
Documents required for a home loan
- KYC documents, such as Voter ID, Aadhaar Card, PAN Card, Driving license, Passport etc.
- Property documents
- Occupancy certificate.
- NOC from housing society or builder.
- Possession certificate.
- Detailed estimation of construction.
- Bank account statement or receipt of payment made to the builder.
- Passport size photo.
Apart from these, a few documents are required specific to the applicant’s occupation.
Documents required for salaried applicants
- Form 16 or latest salary slips.
- Bank account statement from last 3 months.
Documents required for self-employed applicants
- CA audited profit and loss account statement and/or balance sheet.
- Proof of business existence
- GST certificate.
- PAN card.
- Trade license.
- SEBI and ROC registration certificate.
- Import Export code.
Also, there are other factors affecting home loan eligibility.
In India, several reputed lenders extend pre-approved offers to expedite the home loan process. These offers are available on selected financial products like a home loan, loans against property and others. An applicant needs to enter his/her name and contact number to check the pre-approved offers.
Hence, to get instant home loan approval, it is important to keep the above-mentioned pointers in mind. Additionally, it is also important to select the loan amount and tenor with caution as this will affect the home loan eligibility of an individual.