Opting for a home loan deal is as considerable as selecting the home or property. And many times, the home loan amount that you can avail even plays a crucial role in home selection. Becoming home loan ready is an excellent idea, particularly for you as a first-time home buyer regardless of the loan amount you opt for whether 35 lakh home loan EMI or 15 lakh home loan EMI. Becoming home loan ready is an excellent idea, particularly for you as a first-time home buyer. While acquiring a loan deal appeared like a complex task, it can be managed well if you are aware of exactly what you are looking to do, stepwise. You require preparing for at least a 6-month period to become home loan ready in case you are amateur financially. A few of the crucial checkpoints that can assist you to become home loan ready include –
Ensure to keep a clean and disciplined credit record –
Your credit report is considered one of the crucial things that any lender checks or considers before lending you. It is expected that your report must be clean with a score of over 750. Thus, you should keep a thorough and periodic check on your CIR (credit information report) and credit history, and these must be checked for at least 6-months before placing the home loan application so that you can easily rectify any issue or flaw in your credit report. To maintain a strong credit report, you ideally must never make your payments late and ensure to be regular with all your EMIs and credit card repayments.
Hold a strong banking habit –
Lenders generally ask you to provide your bank account statement when you apply for a home loan. Lenders tend to review or analyse your banking behaviour or habits, your lifestyle and expenditure, which can simply be traced if you use your credit card for most of your purposes. Through the report, the lenders tend to understand your credit repayment behaviour and determine your chances of repaying the home loan EMI in full and on time. Also, you must make sure, there are not many cases of bounced cheques in the case of insufficient funds.
Maintain a residence and job stability –
Stability in your residential place and job is even of great importance for lenders to know. They do so, to avoid any scenario of desertion or fraud while making the loan repayment. To understand this, the lender tends to verify your current residence stability and job stability. A minimum of 6 months of stability basically is expected, both in the residential place and job aspects.
Also Check: 15 Lakh Home Loan EMI
Clear off all your debt, if any –
If you have taken up more than 1 loan, make sure you pay them off before you apply for the home loan. Note that holding a lot of loans might negatively affect your loan eligibility potential. Few banks, however, even offer debt consolidation schemes. Lenders factor in your EMI of other debts when computing your eligibility prospect for a home loan. The lower number of EMIs you are serving, the higher your chances of availing an approval on your home loan application.
Place an application for the pre-approved loan –
Few of the banks tend to offer a pre-approved credit option, meaning you can get a home loan even before you finalise the purchase of the property or home. So, in case you are sure of purchasing a home within just a few months, you can opt for this option provided by your bank if you are holding a good banking relationship. Moreover, a few banks such as Punjab National bank and HDFC bank list the projects that are approved by them on their websites, respectively.
Conduct online research –
Before opting for a home loan deal, you must conduct in-depth online research for comparing the interest rates and schemes that distinct banks are providing. You can select a loan plan matching your requirements as markets offer various deals to select from.
Understand the loan procedure –
When you place an application for a home loan, the lender generally sends a third-party representative for authentication. You may even receive queries, phone calls, and visits from banks in regard to the home loan you have applied for. The bank’s department of credit processes the loan application and is even responsible for the declination or approval of the loan application. The approval process generally takes between 4-8 days. After your loan is approved, then your sales officer may assist you through the whole process, thereon.
Keep the documents ready with you –
You should ensure to keep the listed documents ready with you for a quick home loan application –
∙ Duly filled out the application form with the applicant’s photo.
∙ Applicant’s identity and address proof.
∙ Property and home documents, which you are interested to buy.
∙ If you are employed, then you must submit your current pay slip, form 16 and your bank statement for your past six months.
∙ In case you are self-employed, then you must present proof of your qualification, business experience and income tax return for the past 3 years. You as a business or professional applicant must also furnish the P/L (profit and loss) balance sheet of the past 3 years.
What are the crucial points you must note?
Ensure to remember these points before you set out in search of a home or property as per your preference –
∙ Keep your important KYC documents handy. It might appear elementary, but this is crucial. You require these documents at distinct stages of the home loan.
∙ Accumulate your income-linked documents like your income tax returns, salary slips, financial statements, form 16 like your profit and loss statements, balance sheet and others.
Banks offer home loans for distinct purposes like –
∙ Buying a readymade flat or home.
∙ Buying a home or flat under construction.
∙ Buying a plot or construction of a home.
∙ Construction home on a plot of land.
Lenders fund between 75 and 90 per cent of your property or home cost based on your loan amount. Banks do not include the cost that is incurred on registration and stamp duty. Also, you must make proper arrangements for such cost separately.
