The city of dreams Mumbai is constantly bursting with opportunities, but finding a suitable residential property can prove to be a costly proposition.
Luckily, you can own a house in Mumbai if you sort out your finances ahead of time. The best way to do so is by taking a home loan.
Here’s how you can boost your chances of approval while applying for a house loan.
Maintain a healthy credit score
Your credit or CIBIL score is a measure of your creditworthiness. This score informs your lender about your ability to repay the loan. The scale to measure a CIBIL score starts at 300 points and goes up to 900 points. Any rating above 750 is considered excellent and boosts your chances of loan approval. You can also get a loan at a competitive home loan interest rate.
So, make sure you check your credit score before applying. If it is lower than 700, you can bring up your CIBIL score within a matter of months. All you have to do is ensure that you pay your credit card bills on time and don’t default on EMIs if you have an ongoing loan.
Apply with a co-applicant
If you don’t satisfy the home loan eligibility criteria set forth by your lending institution but still want a loan, bring in a co-applicant. They can be your spouse or parent. Try to make sure they are a close family member as that increases your chances of getting approved.
Also, find a co-applicant with a stable income, as they will be liable to pay your EMIs if you are unable to. Your co-applicant will essentially be the co-borrower of the loan.
Select a reliable developer
If your builder is a renowned name within the real estate industry, your lending institution would already know them. In such a case, it will be easier for them to approve your loan. However, if you choose a builder who seems unreliable and provides you with improper paperwork, your lender will hesitate to approve your loan application.
Try to ensure income stability
This is a no brainer! You must have a stable monthly income to convince the lender that you’re suitable for the loan. Income stability builds your lenders’ trust in you. If you have a fixed source of income, it will not be challenging to get loan approval. Only the loan terms and conditions will differ depending on how much money you make every month.
The bottom line
If you are looking to apply for a home loan, we recommend choosing a lending institution that extends competitive interest rates to reduce your home loan EMI amount.
So, what are you waiting for? If you have your heart set on a property, apply for housing finance as the interest rates are at an all-time low. Check your potential EMIs using an online home loan EMI calculator, figure out your eligibility criteria, compile the documents and apply.