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Pro Tips That Will Boost Your Home Loan Approval Chances!
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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.
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Pro Tips That Will Boost Your Home Loan Approval Chances!
While applying for a home loan is simple, getting approved can be tricky. Lenders consider various factors while processing your home loan application and any amiss in any one factor can also lead to rejection. Therefore, before applying for a housing loan, it is always best to know the ways to ensure a successful loan approval.
Here are some pro tips to boost your home loan approval chances.
It is crucial to meet the eligibility criteria before applying to avoid rejection. Often people apply for a home loan without checking their eligibility, giving the lender a chance to reject the loan application. Therefore, before you apply, visit the lender’s website and assess your eligibility to ensure that you meet them. Also, check your affordability using a home loan EMI calculator that computes the EMI you’ll be paying and help you identify a suitable tenure.
To enhance your eligibility and boost chances of loan approval, you can avail a joint home loan. When you apply for a housing loan with a co-borrower, the lender clubs the eligibility of both the applicants. This reduces the risk for lenders, and they are more likely to approve your application. You can take a joint home loan with your spouse, sibling or parents and can even get better home loan interest rates and higher loan amounts.
The lender gathers all your information from your application form and the documents you furnish. If they find discrepancies in the details provided, they can reject your application. Incomplete and inaccurate documents are one of the major reasons for home loan rejection. Therefore, fill the application form carefully without any clerical errors. Also, ensure that the documents you submit are accurate and updated.
Your credit report helps the lenders assess your creditworthiness and past credit behaviours, assisting them in determining your repayment ability. Lenders typically prefer a credit score of 700 and above to approve a loan application. If you have a lower credit score, lenders can reject your application or offer you a high interest rate. Therefore, obtain your credit report and check your credit score before applying. It would be best to rectify the discrepancies on the credit report if any. Also, follow healthy financial habits like paying EMIs timely to maintain a high credit score.
Lenders require you to pay at least 20% of the property cost as a down payment. However, you must pay a higher amount if you can. Paying a higher down payment reduces the loan amount and assures the lender of your credibility, boosting approval chances.
Rejections in home loan applications can lower your credit score and affect your future loan availing chances. Therefore, you must strive to get your loan approved whenever you apply. Furnishing accurate information, having a low debt and maintaining a high credit score can help you assure the lender of your creditworthiness and thus improve chances of approval. So, wait no more. Use these tips and apply for home loans today.
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