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5 factors that affect your home loan eligibility
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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Success
Failure
Have you always nurtured the dream of buying a home?
You can make that dream a reality faster by taking a home loan! Banks and financial institutions have made it easier than ever before for you.! However, the lender has to ensure that you are eligible for a home loan, after all, they must trust you with their money. Thus, scrutiny is justifiable. There are certain factors that may affect your home loan eligibility:
Age:
Age is an important factor for loan application approval. The younger you are, the easier it is to get a loan for a longer tenure. Banks and other financial institutes may hesitate if you are or closer to retirement
Profession and Income:
Unconventional jobs, which are risky and offer no security, or have an inconsistent income flow, can lead the lenders to question your capability for returning the loan amount in time. Frequent changes in your job will also have a negative impact.A steady source of income improves the chances of getting a loan easily, .
Age of Property:
If the property, on which you want to take a loan, is very old, the lenders will also conduct an investigation to evaluate the probability of structural collapse in addition to their usual legal & technical investigations. Other existing properties and assets may also be considered by the lender before sanctioning the loan in such cases.
Credit Score:
Before sanctioning the loan, lenders evaluate the credit history of the applicant, so it important to maintain a healthy credit score. Unfortunately, if you have very low credit score or many pre-existing loans, your application may be rejected .
Dependents:
The number of dependents/co-applicant, for eg. spouse, children or parents, are also assessed before sanctioning the loan. The more dependents you have, lesser will be the disposable income and it is likely that lesser will be your capacity to repay the loan. This can affect your home loan eligibility.
These are some of the factors which are considered while applying for a loan so if you have a poor credit score, work towards rectifying it before applying for a home loan and improve your chances of success dramatically!
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