By providing the necessary documents and fulfilling the eligibility criteria for a housing loan, borrowers can quickly receive approval of their application.
The documents required to apply for a housing loan include –
- KYC documents.
- Property documents.
- Latest bank account statements.
- Latest salary slips.
- Income tax returns.
- Audited financial statements for self-employed individuals.
The eligibility criteria for a housing loan includes –
Self-employed applicants -
- Should be between 25 and 70 years of age.
- Should have an active business for the last five years.
Salaried applicants -
- Must be aged between 23 and 62 years.
- Have a regular income and work experience of about three years.
Other home loan eligibility criteria that home loan applicants have to satisfy are discussed in detail hereunder –
Credit score
A credit score of 750 or above is considered the benchmark to extend housing loans. Such a high score also shows an applicant’s creditworthiness to the lender, thereby indicating his or her repayment capability and minimising the risk of default.
FOIR
FOIR or Fixed Obligation to Income Ratio below 50% is desirable as it will help borrowers manage their finances well. Also, a low FOIR will make it easier for them to pay off monthly installments without any hassle.
Therefore, it is recommended to take note of the required documents and housing loan eligibility to avoid rejection. A refusal can also lower an applicant’s credit score.
Also Read: SCARED ABOUT HOME LOAN REJECTION? FOLLOW THESE TIPS TO ENSURE YOUR ELIGIBILITY
