September, October and November are popular for buying a home, given the holiday season. Many see this as a good time to make a big purchase, like a house. For many, this may be their first home, on which a lot of family and expectations rest – all the more reason for this purchase to go smoothly and without hassle in terms of financing and choosing a property.
To help you buy the home of your dreams, there are many competitive home loans on the market. These secured loans provide access to large loan sums, without limiting your choice of property due to budgetary concerns.
The trend interest rate on home loans starts at 8.30% per annum with EMI being only Rs 755 per lakh which is a reasonable amount to spend on your monthly home loan without jeopardizing your other priorities financial.
However, to be eligible for such competitive offers, aspiring home loan borrowers must ensure that they meet the lender’s basic loan requirements – to ensure their creditworthiness. To help ensure you’re a good match for the lender, be sure to follow the three tips listed below.
3 things to keep handy for a hassle-free home loan application
Obtain a home loan can be very easy, if planned well – but where to start planning and researching? This too can be a daunting process if you go in without any guidance. To help you find the right home loan for your dream home, here are three things you should have on hand.
Your credit report
Your CIBIL score and credit report are mandatory to initiate the home loan application and the subsequent credit report from the lender’s side. Your CIBIL score takes into account the following factors:
- Refund history
- Credit Usage Patterns
- Outstanding debts
- Current financial obligations
- Current sources of income
These are all important demarcations of your financial stability and creditworthiness and help determine your current CIBIL score. Lenders appreciate a minimum credit score of at least 750, to be able to sanction large loan sums. Be assured of your financial credibility allows the lender to approve your home loan application with more flexible terms. A good way to approach this would be to request your credit report well in advance of planning your home loan application, so that you have plenty of time to rectify certain aspects of your report – if they need your attention.
Prepare a cash flow statement
If your home loan application is of a considerable size, make sure you have the right documents ready to talk about your financial stability and ongoing obligations – to assure the lender of your repayment bandwidth and intent. to repay the loan.
This activity is not only for the benefit of your lender, but will also help you understand your budget and the feasibility of repayment. We can have several investments and assets, apart from our liquid savings, it is important to prepare our finances and take stock before applying for your mortgage. This will help you tailor your home loan application to your repayment capacity, ensuring that you meet your EMI schedule without mistaking deadlines.
Keep the required documents handy
Most lenders have a common set of requirements documents for home loans, which is easily available on their websites or even on the internet. A simple search online should be enough to give you an idea of the type of documents you will need to submit to speed up the process of getting your home loan approved, and subsequently, disbursement. Here are some documents lenders typically ask for:
- Documents related to KYC
- Proof of address
- Payslips (3 months for employees)
- Bank statements
- Latest ITRs
Most of these documents are readily available from us – just have a comprehensive checklist to ensure they are all in one folder. Having this ready ahead of time will help you avoid last minute research and hassle.
Endnote
We find that many home loan applicants are better off when they do their due diligence and ensure that their application is well supported by the necessary eligibility parameters. If you feel confident about applying for a home loan after going through this checklist, apply for a home loan today and own your own home sooner rather than later.