The home loan gets assured approval in case of the proper system, which is to be followed. The borrower should keep all the documents ready for the approval of the home loans. Home loans approval is very much necessary for the applicant to buy their dream home as, without the home loans, the borrower can’t buy the property. The prices of the property have reached so high that for most individuals, it is not possible to buy a dream home without home loans. There is a standard set of procedures that needs to be followed to approve home loans to get them approved easily. The borrower should be financially stable before applying for the loan. Also, the person should have a stable source of income and a stable job or a successfully running business in case of self-employed while availing loans. The home loans can be taken from any of the lenders of the borrower’s choice. The ideal lender is the one who charges lower interest rates and also the one who charges lower processing fees for the home loans. The borrower should do a proper survey before applying for the home loans.
The checklist includes the list of documents, CIBIL ratings, and an adequate income to get the home loans approved. The home loans eligibility can be checked with the help of the EMI calculator to know the exact eligibility of the loans. The loans can be taken for a tenure of a maximum of 30 years. However, the actual eligibility of the loans depends upon the age of the borrower. The higher the age lower is the eligibility of the borrower for the home loans. Thus it is better to avail of loans at a younger age as far as possible—the repayment value of the loans increases as the tenure of the loans increases. But the monthly EMI chargeable gets reduced as the tenure of the loans increases. Also, the EMI can be paid faster to become early debt-free if the lender does not charge a pre-payment penalty to the borrower. The loans are also exempted from the tax benefits under the various sections of the income tax act. Thus availing of loans is very much beneficial to save the tax. The government encourages the property buyers to take home loans, and thus to reduce the burden on them, the government provides tax exemption to the borrowers.
Following is the eligibility checklist for home loans:
- Documents checklist:
For employed persons:
- Government identity proof like pan card, aadhar card, driving license, or passport.
- Employment proof like identity proof of the employer or else offer letter provided by the employer.
- Income proof like bank statement or salary slip.
- ITR returns, i.e., income tax returns statement for the past three years.
Additional documents for the self-employed:
- Business registration proof like Gumasta or shop act license or registration of the company under PVT.Ltd ones.
- Profit & Loss statement for the business signed by the charted accountant.
- Bank statement stating the turnover of the business.
- CIBIL score:
The borrower can check for the CIBIL score of themselves on the finance portal or the official website of the CIBIL for the confirmation of the approval of loans. If the CIBIL score of an individual is more than 700 points, then the chances of the loans getting rejected are very low.
The CIBIL score document is a very important one to get the loans approved.
- Eligibility of the loan amount:
The loan amount is approved in proportion to the salary of the borrower. The higher the salary higher is the loans being approved, while the lower the salary lower is the loan being approved. The home loans eligibility amount can be calculated on the website of the bank or an NBFC. The bank immediately rejects the borrower’s loan application if the excess amount of the loan amount is demanded by the borrower, who can be beyond the repayment capacity of the borrower. The maximum limit for the approval of the loans is Rs.3 crore to the highest-income borrower. Thus, according to the home loan eligibility shown on the website accordingly, only the bank’s demand for the loan should be made.
- Property documents with clear titles:
Whether he wants to buy a resale property or a new construction one, the borrower should keep the property documents ready for approval. The same Xerox copies need to be submitted to the bank for approval. Bank does the title verification of the plot and the property and, after that, approves the loans of the borrowers.
The borrower should make the checklist for the documentation and keep it handy to get the home loans approved by the lender. If the lender follows the proper system, the chances of the loans getting rejected are almost nil. The loan applicant is expected to keep clear transparency while applying for the loans in case of the documents required and the income.