Many people want to avail a home loan facility to purchase or build a nest of their choice.
However, lenders don’t approve their loan applications. Why?
It is because they don’t seem to have the required home loan eligibility.
On that note, let’s check out factors affecting home loan eligibility and easy steps to calculate home loan EMIs. Read on!
What factors affect the home loan eligibility?
1. Your CIBIL score
The higher is your CIBIL score, the better will be your home loan eligibility to get a large amount at a lower rate. It is the mirror of your creditworthiness. A superior credit score showcases that you have paid your earlier EMIs on time. Hence, lenders can rely on you for timely repayments. A credit score of 750 or more is considered best.
2. Your income and the EMI amount
If your income can support an EMI amount, you can get the loan approval faster. Hence, it becomes a must to check out your exact payable EMI amount and know if your income can support it over a tenor. You can calculate EMI for home loans using the EMI calculator on a lender’s site for free.
3. Your employment status
If you hop jobs for monetary gains, your home loan eligibility will be lower. It is because lenders can’t trust you for making timely EMI payments. Hence, while applying for a home loan, be consistently employed.
Here’s how you can calculate EMI for home loans
- Open the home loan EMI calculator on your lender’s website.
- Choose your desired amount, the applicable rate of interest and the tenor.
- Once done, the tool will showcase an exact home loan EMI amount, payable interest charges and overall loan cost.
To determine your eligibility for a particular lender, you can also use the home loan eligibility calculator on their platform. This way, you can know the precise home loan amount and apply accordingly to get the loan approval.
