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
-
`
The Role of Global Mobility in Business Planning for 2025
In an era where the competition for top talent is fierce, the significance of global mobility in business planning cannot be...
November 1, 2024 -
`
Will AI Legal Advice Empower or Exclude Those in Need of Justice?
The rapid advancement of technology has introduced AI legal advice into the legal profession, creating both excitement and concern. Law firms,...
October 25, 2024 -
`
Trump vs. Harris – Who Does Hollywood Support?
As the race for the White House heats up, celebrity endorsements have become an influential force in shaping public opinion during...
October 22, 2024 -
`
How to Understand Your Energy Bill and Prevent Common Billing Errors
Understanding your energy bill is essential for managing household expenses and catching potential errors. Your energy bill offers a breakdown of...
October 18, 2024 -
`
Is Shawn Mendes’ Relationship With Camila Cabello Finally Clarified?
Recently, Shawn Mendes shared insights into his connection with Camila Cabello during an interview with Jay Shetty. Their relationship, which has...
October 15, 2024 -
`
China Stimulus Fuels Market Surge, But Can It Save the Ailing Economy?
The recent China stimulus measures have sparked renewed optimism in the markets, but doubts remain about whether these efforts will be...
October 10, 2024 -
`
Top 12 Little-Known Savings Tips for Cutting Expenses Fast
Are you looking for the best ways to save money? Saving money often feels like a daunting task, but it doesn’t...
October 10, 2024 -
`
Is Legal Advice from ChatGPT Trustworthy?
Legal advice from ChatGPT may seem like a convenient and cost-effective solution for those facing legal challenges. AI tools like ChatGPT...
October 5, 2024 -
`
James McAvoy’s “Rough” Celebrity Crush Encounter
James McAvoy recently opened up about a memorable yet awkward encounter with his celebrity crush, Jennifer Aniston. Promoting his latest film,...
September 29, 2024
You must be logged in to post a comment Login