Most of the people do not have an idea about how lenders decide home loan eligibility for a borrower, a lot of the times it has been seen that when a borrower applies to borrow a loan to buy a particular property, the borrower rejects the application, a very probable reason for that can be that the value of the property exceeds his home loan eligibility.
Home loan eligibility of a borrower is generally decided according to repayment capacity of a person, it is not the only factor that contributes to it there are a few more factors that lenders are very keen about. A person can borrow more if he is in early stage of his career as then he can repay his loan for a longer tenure.
The nature of occupation of the applicant also affects a lot on the loan eligibility of a person. A person associated with a highly reputed company can borrower more loan than that who works in a less known company. If a person is a constant job hopper then it can lower his loan eligibility.
The number of dependents on the applicant his savings, his credit history make a fair contribution in deciding the loan eligibility, other than that the lenders also consider the fund inflow and outflow pattern, it includes all the prior commitments of the borrower as then only the lender can decide on much the person can take out of his monthly salary to pay for the loan that he has applied for.
The basic idea of lenders behind all this is to evaluate the credit worthiness of the applicant or in other words how much loan can the borrower afford. Lenders are quite reluctant to the people that do not satisfy to the basic requirements of the lender as home loans are hefty and also quite vulnerable.
If a person falls short of the amount that he require to purchase a property then the best option with the person is to club his income with any of his family member, it would increase his loan eligibility and then he can purchase that property or if the applicant has already borrowed a loan then he must repay that first as it would also enhance his loan eligibility.
So, before a person applies for a home loan he must evaluate himself, it would make the process speedy and also if a person fits into the eligibility scale of the lender then there are chances that he can get away with the loan at exciting interest rates.
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