Finance blogHome Finance

How to ensure fast approval of your home loan application

how-to-ensure-fast-approval-of-your-home-loan-application.jpg

How to ensure fast approval of your home loan application

Want to apply for a home loan anytime soon? You should definitely keep a few pointers in mind since these will help you get your home loan application approved faster without any hassles or delays. The first thing to do is make sure you have a good credit score. You should strive to improve your credit score and get it to above 700 or 750 if possible before applying for the home loan. A good credit score will increase your chances of getting your home loan approved faster. You should check your credit score at CIBIL by paying the small fee and then strive to improve your score before you eventually apply.

Work out the income to debt ratio that you have. You should divide the debt that you have by your income. The ratio should not be more than 40% of your income. 30% is even better. You should either increase your income or lower debt before applying for a home loan. Save up money for your down payment. In case you manage to pay 20% of the price of the home as your down payment, this will definitely earn you brownie points with your bank. Also, a big down payment means a lower amount as the loan and this will directly help you save on interest costs over the loan tenor.

You should make sure that you have a stable job or professional career before applying for a home loan. Your income should meet the eligibility criteria of the financial institution for the amount that is sought. A secure and stable job indicates higher stability which is something that lenders always look for. You should always be honest with the financial institution about past loans and their repayment and other information that the bank should be aware of. You should always disclose the debts that you currently possess and your income. Following these tips will help you get a home loan approved faster. If you do the groundwork before applying, the rest will not be a stressful affair by all means.

 

Share this post

Comments

comments