Every one has a home that he dreams about. But in the present day situation it is very difficult for a common man to even think about having a home of his own choice due to the soaring property rates. It is very hard for a common man to arrange for all the funds required from his own resources. Home loans are a blessing for such people.
But there are a few things that a customer must understand before he applies for the loan. When a customer approaches a bank for home loan the first thing that the banks do is they evaluate the customer on the basis of his eligibility i.e. how much the trustworthy the customer is?
So before a customer approaches a bank he must self evaluate himself whether he fits in certain criteria’s that the banks look for. The first thing that the bank will do is that they will try to evaluate the customer according to his repayment capacity in order to check whether the customer will be able to pay the loans on time. The bank will take in to consideration your personal credit income documents, education, experience.
The banks calculate the loan eligibility of a customer through FOIR (Fixed Obligations to Income Ratio). Most of the banks take FOIR up to 45-50 percent of the monthly income of the customer. Banks considers that a customer requires around 50% of his monthly income to meet his personal expenses and rest 45-50% includes all his fixed obligations that also include the home loan. All these factors play decisive role in determining the loan amount as well as the home loan rate to be charged to the borrower.
The older banks still takes in to account the past record and the relationship of the borrower with the bank to sanction loan.
No comments:
Post a Comment