Home Loan Eligibility: 8 Factors That Decide Your Approval
Home Loan Eligibility: 8 Factors That Decide Your Approval
What Is Home Loan Eligibility?
What Is Home Loan Eligibility?
Before any home loan is approved by the lenders, they determine your financial stability.
Before any home loan is approved by the lenders, they determine your financial stability.
A good credit score will help in getting more approvals and reduce interest rates.
A good credit score will help in getting more approvals and reduce interest rates.
Credit Score Matters Most
Credit Score Matters Most
An increase in income will make lenders confident of your repayment of EMIs.
An increase in income will make lenders confident of your repayment of EMIs.
Income Levels and Capacity to Repay
Income Levels and Capacity to Repay
Fixed Obligation to Income Ratio (FOIR) Rule: total EMIs must not exceed 50% of monthly income.
Fixed Obligation to Income Ratio (FOIR) Rule: total EMIs must not exceed 50% of monthly income.
Knowledge of FOIR Rule
Knowledge of FOIR Rule
The age influences the loan tenure and repayment schedule given by the lenders.
The age influences the loan tenure and repayment schedule given by the lenders.
Applicant’s Age Impact
Applicant’s Age Impact
A long record of employment is a boon to your home loan eligibility profile.
A long record of employment is a boon to your home loan eligibility profile.
Job Stability and Employment Type
Job Stability and Employment Type
LTV is capped at 90%, 80%, 75% depending on the property value.
LTV is capped at 90%, 80%, 75% depending on the property value.
Loan-to-Value (LTV) Ratio
Loan-to-Value (LTV) Ratio
Banks access the property’s valuation, verify legal ownership to ensure all necessary approvals are in place.
Banks access the property’s valuation, verify legal ownership to ensure all necessary approvals are in place.
Property Check
Property Check
There are various loans which decrease eligibility since the monthly repayment load increases.
There are various loans which decrease eligibility since the monthly repayment load increases.
Current Loans and Liabilities
Current Loans and Liabilities
Higher down payment reduces risk and improves approval chances.
Higher down payment reduces risk and improves approval chances.
Bigger Down Payment Helps
Bigger Down Payment Helps
Disclaimer The information provided on this website is for general informational purposes only and should not be considered financial or legal advice. Please consult with a qualified financial advisor before making any decisions.