A mortgage loan is essential in helping most of us achieve our dream of homeownership, and preparing for the application process will make your approval easier. In the checklist we have compiled, you will find all the documents you will need to get your mortgage approved hassle-free. Read on to find out more.
What is mortgage eligibility?
The main thing that lenders consider when reviewing a home loan application is the applicant’s eligibility. They have their own criteria against which they measure your eligibility for a home loan. It refers to all the requirements that you need to meet to be considered a good candidate for your desired home loan amount. The eligibility criteria for common home loans include:
Your age is an important factor in your mortgage application. Younger people with a longer working tenure ahead of them are more likely to be approved. On the other hand, applicants nearing retirement may not be eligible for the most favorable home loan terms, resulting in either higher interest rates or a shorter loan term.
Your financial situation is indicative of your income stream and your ability to repay a loan. Lenders assess an applicant’s financial position before sanctioning a loan in order to screen out high risk applicants who may be in EMI default. Your monthly income should be high enough to support the loan amount you requested. Most major lenders expect a minimum monthly income of Rs 30,000 to review your mortgage application.
3. Credit score and history
Having an impeccable credit history is good for your home loan application. This proves to your lender that you are creditworthy and projects you as a reliable borrower. To get attractive home loans from lenders, potential borrowers are advised to have a credit score of 750 and above.
If you are still not sure of your mortgage eligibility, use the mortgage calculator and get a realistic overview of your mortgage requests and your ability to pay it off.
Benefits of Using a Home Loan EMI Calculator
Most lenders offer online tools to help borrowers make informed decisions. You can use any of these online tools like the Bajaj Housing Finance Limited Home Loan EMI Calculator. Here’s what potential borrowers will know when they use this handy tool.
1. Simple estimation
A home loan EMI calculator ensures that the user gets an accurate picture of what they are required to pay as total interest and EMI on their home loan. This overview gives you the luxury of planning your financial obligations for the future in a way that is comfortable and convenient for you, without the hassle of complex manual calculations.
2. Custom tenor options
The Home Loan EMI Calculator offers a personalized EMI forecast based on the term you choose, giving you the freedom to choose the term that is most beneficial to you. Many lenders offer a longer repayment period of up to 30 years for home loans to eligible applicants with a strong credit profile.
A complete list of documents required for a home loan
The documentation checklist * that we have prepared is divided into levels to better guide you through your application process. Note when you might need these documents and keep them ready accordingly.
– A completed housing loan application file
– Photographs (passport format)
– Identity document (PAN card, Aadhaar card, voter card, driver’s license or passport)
– Proof of your age (Aadhaar card, PAN card, passport, birth certificate, bank book or driver’s license)
– Proof of residence (bank book, voter card, ration card, passport, utility bill such as telephone bill, electricity bill, water bill, gas bill , a police receipt LIC)
Proof of stable income
– If you are an employee candidate, you must provide the salary slips for the last 3 months, with your ITR (2 years) and bank statement for the last 6 months.
– Independent candidates must be able to present a stable income from a business with a vintage of at least 5 years. The documents for this purpose include the bank statement for the last 6 months, the income statement and the ITR.
Property documents you will need to submit for a home loan application
– A registered deed of sale, a letter of attribution or an original copy of a sales agreement stamped with the builder
– A copy of the Agreement
– A copy of the approved project plan / MAP
– A certificate of occupancy if your apartment is ready to move into
– Receipts for property tax payments
– An approved copy of the construction plan
– In the case of a balance transfer, you will need to submit an NOC, your sanction letter, your statement of account (SOA) and your foreclosure letter
– In case you claim additional income from other sources, you will need to provide supporting documents for the same. For example, rent from another property or investment dividends
* This is an indicative list, and your lender may request more documents once you have started the application process.
Apply for a home loan today
Taking out a home loan is a big step towards home ownership and all it takes is a checklist to make sure you meet all of the simple requirements. The major lenders offer competitive home loan deals, with mortgage interest rate and easy-to-complete prerequisites.
Disclaimer: This content is distributed by Bajaj Housing Finance Ltd. No HT reporter is involved in the creation of this content.
Never miss a story! Stay connected and informed with Mint. Download our app now !!