Here are the top 4 tips to improve your housing loan eligibility to get your loan sanctioned hassle-free –
1. Clear any existing loans
If a borrower has any existing loan under his/her name, he/she must first pre-pay it before applying for a fresh housing loan. Due to your non-repayment of an existing advance, your lender might reduce your credit amount or offer advances at higher interest rates.
2. Improve your credit score
CIBIL score plays a pivotal role in determining the loan amount. A credit score of 750 or above reflects your creditworthiness and risk-free to your lender. Besides, higher credit scores also lead to lower home loan interest rates.
3. Opt for a longer tenure
Whenever a borrower increases his/her loan tenure, the housing loan eligibility increases as the borrower will have more time to repay the loan on time. This improves the chances of timely payments and reduces the risk of approving the loan.
4. Apply with a co-applicant
Working spouse with a stable income and high CIBIL score can be added as a co-borrower for a joint housing loan. This might result in sanctioning of a higher loan amount as well as the EMI affordability also increases.
With these tips in mind, you can improve your housing loan eligibility significantly.