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Top 7 Smart Tips to Qualify for a Home Loan Quickly

Updated: Mar 21, 2022
7-Useful-Tips-to-Get-a-Home-Loan-Easily

Finding your dream home can be exhausting. You put in years of research; months of reviewing properties online combined with visiting your shortlisted sites until you find that perfect home. But when it finally does, your next worry is how to get that home loan easily approved.

7 Useful Tips to Get a Home Loan Easily

With real estate prices soaring sky high, home loans are the only way out for the majority of Indians to be able to own their dream homes. The good news is that home loans today are easily available.

Let’s take a look at these 7 useful home loan tips that can help get you into your dream home super quick.

Tip 1 - Work Towards a 750+ Credit Score:

Credit score is one of the most important criteria lenders check. Most of them may not accept applications if the credit score is lower than 700. To ensure that does not happen, it is essential that you have a 700+ credit rating prior to placing your application with the lender.

Must Read : Smart Tips To Improve Your CIBIL Score

A 750+ credit score improves eligibility even more for getting that super fast home loan by assuring the lenders of your creditworthiness. Moreover, a positive credit history will make you an attractive candidate for a home loan. This means you could have more offers from multiple home loan providers like Grihashakti and get your loan at an affordable home loan interest rate

Tip 2 – Sort Out Credit Report Errors:

Your positive credit score is only one component of your credit history. The lenders will go through your entire report that is generated by an accredited credit bureau such as CIBIL. Having said that, these reports may not be 100% accurate. Therefore, before making your home loan application it is important that you carefully scan the report and check the accuracy of the information that it contains.

If you spot errors in the report, you have the option to flag it to the concerned agency and have the information corrected. Keeping your credit report free of errors plays a major role in the applicant getting an easy home loan.

Tip 3 – Get a Co-applicant on Your Home Loan:

If you are thinking of how to get a home loan easily, then the approval chances go up significantly if you have a co-applicant with you when you make your home loan application. Since a home loan can be a significantly large amount, having two applicants with steady incomes and good credit scores assures lenders that there is less risk of repayment default.

Moreover, making a joint home loan application could make you eligible for a larger loan amount. The lenders will be inclined to approve as the repayment capacity is higher too. Having a female applicant as the primary owner of the property to be purchased in the loan request makes you eligible for preferential interest rates among many lenders.

Tip 4 – Opt for the Maximum Repayment Tenure:

Smaller monthly instalments coupled with a long repayment tenure is preferred by home loan providers like Grihashakti. The logic behind this is that borrowers with economical EMIs on home loans as a result of choosing the maximum repayment period such as 25 or 30 years will be able to manage their finances much better. The implication here is the risk of loan default is minimum in such cases.

Borrowers can also check with the lenders if they have the option to part pay the home loan whenever they have surplus funds. This helps bring down your monthly EMIs by saving on the overall interest outflow.

Tip 5 – Be Ready With your Paperwork:

The lack of proper documentation is one of the common reasons why home loans get frequently delayed or rejected by lenders. It is important that you check the list of paperwork that you need to submit in support of your home loan application.

Most lenders like Grihashakti will have a basic list of documents that should be submitted, published on their website. Even though the finer points may be variable, the general consensus remains the same among lenders. The list of standard documents that you will need to get a quick home loan are:

  • Proof of Identity: Pan card, Aadhaar Card, Passport or Voter Id is acceptable
  • Proof of Address: Aadhar Card, Utility bill, Passport or Ration card
  • Proof of Income: 3 months salary slips, Form 16 for the last 2 years and 6 months bank statements for salaried individuals. For self-employed individuals, 2 years ITR with computation, 6 months bank statements and CA audited Profit and Loss statements
  • All applicable property documents

Tip 6 – Rectify your Fixed Obligation to Income Ratio:

The FOIR or the Fixed Obligation to Income Ratio is another key factor that all home lenders take into consideration at the time of reviewing your home loan application. From the borrower perspective, this is nothing but the ratio of your total outflow through existing loan repayments every month to in-hand monthly earnings.

For lenders, the magic number for the FOIR is around 30%. Anything over 60% is a red flag and may lead to the home loan request getting rejected. Therefore, it is important to bring down your monthly financial commitments significantly prior to applying for a home loan. A lower FOIR could also help you get better terms on your home loan, such as a larger amount or a lower interest rate. This is a home loan tip well worth remembering.

Tip 7 – Be Open to Paying a Higher Down Payment:

Home loans do not cover the entire purchase price of your property. There is a down payment component involved which typically ranges between 10% to 20% of the property valuation. This means that the amount of the home loan will vary between 80% to 90% of the value of the property. This percentage could be lower, as it depends on your overall repayment capacity and eligibility. You can use our home loan eligibility calculator to get an idea of the maximum amount you can borrow, which will in turn give you an idea of the total down payment amount you will need to pay upfront.

While it is mandatory for the borrower to service the minimum defined percentage as the down payment, there is the option for the applicant to go beyond that amount and pay more upfront. This automatically brings down the actual amount of the home loan making the possibility of a quick sanction more probable.

Wrapping Up

Buying your dream home is so much more than a financial transaction. That said, the financial component is a reality that every homeowner must deal with. Explore a range of hassle-free, convenient and easy home loans from Grihashakti by Fullerton India at attractive loan interest rates. Speak to the home loan department on the toll free number 1800 102 1003 between 9.30 a.m. to 6.30 p.m.Monday to Saturday for more information.

Must Read : Is now a good time to buy a house? What home buyers in 2022 should know

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