On Ensuring Home Loans
A home is a dream, which most people dream once in their life. With the demand always on the high, most find it difficult to raise funds to buy the dream home. One main reason many had to shelve their dreams is the inability to find enough money. This is where banks come in. The
loans provided by banks play a crucial role in fulfilling the dream of many to own a home. Applicants now have a spectrum of options before them to choose the loan at interest rates that suit their budget.
But securing home loans is not that easy. Banks consider a lot of factors before approving a loan. Carelessness, mostly, on the part of the applicant to keep a clean financial record often results in banks turning down requests for loans. Not many people seem to be aware about this. Here are some ways to ensure home loans.
Ways to ensuring loan
One of the prerequisites for assured loan is to maintain a good CIBIL score. Credit Information Bureau of India Ltd. (CIBIL) is a score made on the basis of the previous loan repayment or credit card usage record of a person. A good CIBIL score for home loan is 700.
Many factors like dues not properly paid and defaulting repayment of EMIs can adversely affect CIBIL scores. Timely repayment of dues and not taking unsecured loans is essential to maintain a good CIBIL score.
Other things to note for bank loan
Once you have a good CIBIL rating, make sure that the application for loan is consistent and true about facts. Differences in document and inconsistencies about your details can make the bank suspect your intentions and reject the loan.
Another crucial factor is age. The younger you are, the more confident the bank will be to issue a home loan. The same is true about a regular job and salary. A person who hops from one job to another is less likely to find favour with banks when it comes to home loans.
Those who file Income Tax Returns regularly and has a good track record with previous loans stand a good chance of clearing the bank’s approval.