Lenders offer a home loan or any other loan in that case only after assessing the eligibility of a prospective borrower. It is, thus, essential to gather pertinent information about home loan eligibility criteria to enjoy instant approval.
Individuals failing to meet the stipulated eligibility requirements can improve their chances of home loan approval by following these few simple tips -
1. Adopt habits that improve credit score
One of the most tried and tested ways to improve housing loan eligibility is to increase your credit score. To ensure that you can adopt the following measures -
- Maintain a lower credit utilisation ratio below 40%.
- Pay credit card bills within the due date.
- Avoid applying for multiple credits at a time.
2. Apply for a lower loan amount
Another way to increase home loan eligibility is by applying for a small loan amount. It will help lenders ascertain about the applicant’s repayment capacity. Interested individuals should also check home loan eligibility pertaining to the amount they can avail with their preferred lender to get an idea about the same.
3. Repay existing liabilities
In case you are servicing multiple loans and credit cards, make sure to clear your debts as soon as possible and lower your FOIR. It will help in improving credit score to a great extent.
4. Consider a joint home loan
In case you cannot qualify for a home loan owing to low credit score, you can alternatively opt for a joint home loan to get it sanctioned.
Before applying, utilise a home loan eligibility calculator to ascertain the exact loan amount you are eligible to avail to avoid any discrepancies in the future.
