The rising cost of real estate properties coupled with its escalated demand substantiates the growing requirement for housing loans. Catering to this boosted demand, multiple financial institutions now offer their home loans that come with a substantial loan amount and competitive rate of interest.
Such secured loans require minimum home loan eligibility criteria; however, potential borrowers can increase their eligibility to gain negotiation capability. It may result in a higher LTV or decreased rate of interest.
Here are a few tips to increase your eligibility before approaching a financer to make the most of the availed home loan –
Prepay your existing credits
Existing credits pile up on your current financial liabilities, thereby increasing your debt to income ratio beyond 50%. Considering that lenders look into the FOIR of potential borrowers, possessing higher liabilities may make you less creditworthy. On the other hand, prepaying your existing credits adds on to your home loan eligibility criteria.
Make substantial down payments
Reputed financers offer 65-70% of the market value of the mortgaged property. Nevertheless, in case borrowers are willing to provide a higher down payment than the minimum amount, it lowers the LTV substantially and hence increases his/her eligibility criteria.
Opt for joint home loans
In case of insufficient credit score, higher FOIR, etc. prospective borrowers can opt to co-apply for a home loan. Having a co-applicant for a home loan helps borrowers avail –
- Quick approval.
- Higher loan amount.
Additionally, holding a higher credit score reflects a clean credit history, making the prospective borrowers more creditworthy to avail a higher loan amount.
