Three Simple Ways To Improve Your Chances Of Home Loan Approval
A house is one of the biggest purchases you can make throughout your life, and if you’re in the market to buy one, either to live in, or to use as an investment property, then chances are, you’ll need to take out a home loan. Home affordability has risen sharply in the last two years, with home rates declining and interest rates on loans falling to their lowest. So if you’re planning to buy a home, chances are you want to get the maximum loan amount possible. If you’re a first-time home buyer, cracking the home loan eligibility requires some research.
A home loan is an amount of money lent to an individual borrower by a bank or other loan provider for that individual to finance the purchase of a property. The lender and borrower will agree on a term in which the loan is to be paid back, typically, this will be a period of 25 to 30 years. The lender and borrower will also agree on a repayment schedule, which will generally be fortnightly or monthly but can vary. Home loan eligibility is a key reference point for banks, non-banking finance companies (NBFCs), or housing finance companies (HFCs) to ascertain the maximum loan amount a home loan applicant can borrow and assess her/his trustworthiness to pay back the loan.
Maintain your credit card score
There are many ways to boost your eligibility for a home loan. Most lenders check credit scores before approving an individual for a home loan. The CIBIL score determines how good you are with your investments, previous loans, and your financial position. To maintain a good score, you must have a clean financial record. Make sure your credit cards aren’t unpaid and clear off all your outstanding debt, if any.
Hold off any career change
Most lenders like it if you’ve been with the same employer for a minimum of six months, not including probation periods. Sticking with your employer while going through the home-buying process is crucial. Any changes to your employment or income status can stop or significantly delay the mortgage process.
Lenders approve your home loan based on the information provided in your application. Taking a lower-paying job or quitting your job to become self-employed throws a wrench in the plans, and lenders must reevaluate your finances to see if you still qualify for the loan.
Be wary of credit card limits
The higher your credit card limit is, the less money a lender can responsibly lend to you. With that in mind, reduce your credit card limit or close it down altogether if you’re applying for a home loan. But do it a bit before you apply for a home loan, as closing credit accounts can affect your credit score. You stand a much better chance of being approved for a home loan if you stick to just one credit card with a reasonable limit.
More in Financial Planning
-
`
Some of the World’s Most Valuable Dimes For Colletors
When asking the question “What dimes are worth money,” numismatists – both seasoned and novices – often find themselves fascinated by...
April 24, 2024 -
`
Everything You Need to Know About Withdrawing Your Notice to Vacate
If you have ever been in the whirlwind of renting, you know the drill: You find a cozy space, sign the...
April 16, 2024 -
`
How Much Is Tony Hinchcliffe’s Net Worth in 2024?
According to the latest updates, Tony Hinchcliffe’s net worth is an impressive $5 million. The comedy star’s growing net worth reflects...
April 10, 2024 -
`
How to Start A Nonprofit in 2024? A Complete Guide
Starting a nonprofit can be a profoundly rewarding venture. After all, it allows you to make a significant impact in your...
April 3, 2024 -
`
Student Loan News: Biden Administration Approves $4.9 Billion Student Debt Relief Plan
In the latest wave of student loan news, the Biden Administration has made a groundbreaking announcement that brings financial relief to...
March 26, 2024 -
`
Annuity Rates – How Much Will Your Retirement Payout Be?
Planning for retirement is a crucial step towards financial security in your golden years. One tool that can be part of...
March 20, 2024 -
`
Creating a Seamless Marketing Campaign Across All Online Platforms | Some Effective Strategies
Maintain Visual & Tonal Consistency The aesthetic and voice of your brand serve as the cornerstone of recognition and trust. Whether...
March 16, 2024 -
`
How Effective Are Gender-Based Violence Laws?
Imagine a world where the fear of violence doesn’t cast a long shadow over everyday life, especially for women and girls....
March 4, 2024 -
`
6 Essentials of A Successful Startup
The entrepreneurial landscape is a testament to the human capacity for innovation and resilience. Navigating this terrain requires more than just...
February 26, 2024
You must be logged in to post a comment Login