Purchasing a home is a wonderful milestone that everyone anticipates. You want to finalize the deal as quickly as possible, whether you’re ready to get started on the interiors or simply want to name that dream house yours. Planning and preparation ahead of time is the most efficient way to have your home loan authorized. With property prices climbing into the tens of lakhs or even crores, buying a home without a home loan is nearly impossible nowadays. Home loans, thankfully, are plentiful. However, not every application for a house loan is approved. Even a minor error can result in your loan application being denied.
Tips to qualify for home loan quickly
Build your credit score before you apply
When applying for a home loan in India, having a strong credit score and credit history will help you. Your eligibility improves if you have a credit score of 750 or above. It enables you to obtain numerous home loan offers at the best interest rates from the top lenders. It’s important to remember, though, that improving your score doesn’t happen immediately. It can take anything from 3 to 24 months to raise your credit score, depending on your current situation.
Save for a higher down payment
When you apply for a home loan, you must contribute a portion of the purchase price from your funds, with the lender covering the remainder. You should strive to put down as much money as possible. This will minimize the amount to be borrowed, as well as the overall cost and term of the loan. You’ll have to pay back less if you borrow less. Keep in mind that you must repay your loan plus interest and other fees. As a result, taking out the smallest loan feasible will save you money over the term of the loan.
Go for longer tenure
Applying for a home loan with a longer term lowers your monthly EMIs, alleviating financial stress. Lenders prefer home loan applications with a longer term and lower EMI, as this reduces the risk of EMI default.
Have all documents ready
The lack of needed paperwork is one of the primary reasons for home loan refusal. Home loan processing can be slowed or even rejected if you don’t have all of the required documents. As a result, double-check the lender’s website and make sure you have all of the necessary paperwork.
Apply for joint home loan
An approval rate for a joined home loan is greater. When you apply for a house loan with your spouse or another family member who is employed, the loan is more likely to be accepted. Because there are two salaries, lenders prefer joint house loans because payback is more likely.
Go for a pre-approved home loan
One of the greatest strategies to have your home loan application accepted quickly is to get it pre-approved. Home loans that have been pre-approved are based on your ability to repay. The amount of your home loan is determined by the lender using your most recent financial information. Pre-approved home loans are often approved within one or two days of receiving the required papers.
Choose a lender with whom you have a good relationship
Choosing a lender who is familiar with your financial history, such as the bank where you keep your salary account, will help you be accepted more quickly. Make sure any outstanding concerns, such as a disputed credit card bill, are resolved before applying for a home loan. You’ll have a better relationship with the lender as a result, and they’ll be more likely to approve your application quickly.