What are the ways to enhance home loan eligibility?

If you seek to apply for home loans, using the home loan eligibility calculator is imperative nowadays. This tool helps you find the loan amount you are eligible for and the payable EMIs. You can also enhance the eligibility of the loan in a hassle-free manner. Following are the ways to do so –

Applying jointly

The ideal way to increase the eligibility is by applying for the loan jointly with your spouse. This is because lenders check home loan eligibility based on income. Joint applicants have the advantage of being able to show higher income. This, in turn, helps increase the principal amount. Also, when it comes to joint loans, the onus of repayment falls on both parties as opposed to individual applicants.

Record the variable pay

If you are employed with a reputed company, chances are you may be drawing a variable pay on an amount over and above your CTC and net income. For example, sales organisations offer an incentive based on the monthly sales target achieved. Some companies also provide year-end bonus, cash rewards, and stock options, which increases the salary massively. These cash incentives help raise your eligibility.

Desired credit score

Your scores are fundamental in helping the loan getting sanctioned. Lenders require you to have a minimum score 750 and above off 900 for being eligible. Your credit ratings get assigned based on your credit repayment behaviour. If you default on repaying the loan, it may get rejected. If the credit score is below the 750-mark, you can start repaying the loans a few months before applying for the loan.

Repaying debt on time

Many hardly realise the importance of repaying the credit card debt timely. This can impact your credit score as well. It is better you pay off the entire credit card debt within the billing cycle. Partial credit card payments can get in the way of the loan getting approved. Paying off the dues timely shows the lenders that you can be a trusted lender and will repay the EMIs without defaulting.

Opting for longer tenures

Long loan tenures can enhance your home loan eligibility criteria while reducing the EMI amount drastically. But you may need to pay higher interest rates on the loan. On the other hand, shorter tenure can reduce the principal amount approved to you.

You can find the home loan eligibility calculator on the lenders’ portal. Use the same before approaching them.

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