Buying a residential property/house is a sizeable capital outlay, and if you have decided to do so, it is crucial to ensure that your application for a home loan is approved expeditiously. Here, we will expound on some guidelines that can facilitate the process of applying for a housing loan, simplify it and may quicken the approval of your application.
To begin, it is imperative to have a commendable credit score. A three-digit numerical expression that denotes your eagerness to reimburse the loan promptly. A superior credit score indicates that you are enthusiastic about repaying the loan within the stipulated period. Conversely, a subpar credit score highlights an indifferent attitude towards the loan and a disregard for paying the loan EMIs on time. To augment your chances of obtaining swift housing loan approval, your credit score ought to be at least 750. Ensure that you pay all your EMIs and credit card bills on time, decrease your credit utilization ratio, and repay any previous loans before submitting a new loan application.
Secondly, you must familiarize yourself with the eligibility criteria for the home loan lender. Every financial institution that disburses loans has its distinct set of eligibility prerequisites that you must satisfy to procure the loan. Verify and apply only after meeting all the eligibility parameters. If you do not fulfill any eligibility conditions, communicate with the lending institution and justify why you are unable to meet these criteria. If you possess a great credit score, the lender might choose to grant you a loan at its discretion, even if you do not meet the eligibility requirements.
Thirdly, endeavor to settle any outstanding loans. The debt-to-income ratio measures the percentage of your entire income that goes into loan repayment. If your debt-to-income ratio exceeds 40 per cent, and you seek prompt approval of your housing loan application, mitigate your debt by repaying a few loans.
Lastly, ensure that you have all the necessary documents at hand. Lending institutions scrutinize the applicant's profile and income-related information to minimize the risk associated with lending. Applicants must submit various documents along with their housing loan application. By preparing all the mandatory documents before submission, customers can expedite the loan approval process.
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