Factors That Decide Applicant’s Eligibility for Home Loan

Every bank that offers loan will look into many criteria prior to sanctioning it. Among the long list of factors few of them are:

Employment Stability: It’s a crucial aspect of home loan consideration. Unless the applicant is salaried and employed for at least 2 years in the current profession or if the applicant is self-employed with a minimum of 5 years of total earnings loan will not be processed.

Age Criteria: The younger the applicant is there is more probability of getting a loan. Most banks offer home loan for salaried employees only if they are between the age group of 20 to 60 years. However, for self-employed, this will change to 24 to 65 years.

Credit Rating: Apart from the applicant’s company’s performance, the individual credit rating has a lot of importance. Good credit rating will increase the chance of getting the loan with more flexibility on loan amount, EMI, tenure and interest rates. Default payment records, fraudulent tracks, and the outstanding loan will reflect negatively on the applicant, this could lead to bank’s cancelling the loan request or will charge a high rate of interest.

Employer: If the applicant is working with an employer who has a high reputation and impressive turnover, the credibility of the applicant will respectively increase. Being a part of reputed and high turnover companies is an asset for the applicant especially when it comes to applying for a home loan.

Financial Situation: For this factor, not just present status is considered, the past records of financial stability holds a lot of value in deciding the eligibility for a home loan. It is a key to success in all fields if you have good financial records, this can decide the interest rate percentage, loan amount and tenure when applying for a loan.

You can also check HomeCapital Down Payment Assistance Program for getting 50% of your down payment needs as interest-free personal loan.