First Time Home Buyers Guide

First Time Home Buyers Guide

Buying a home in the proper location is really quite a hectic job. To depend on the work on the lender is another of the most frustrating things that you may need to undergo. Many a time you witness that instead of paying higher debts you don’t meet to your satisfaction. Thus to try and keep things legitimize there are certain beneficial steps that can help you a lot. Instead of completely depending on a lender on choosing the perfect house for you analyses it yourself. Thus following below are some certain steps that will provide a perfect guide for first time home buyers.

Pick up a proper mortgage 

This is the best of the things that you should surely think about before buying a house. The reason for the fact is that as you will be on an ongoing EMI there should be a proper mortgage for it. Pick up a certain mortgage and thus it will surely help you in ensuring a goodnight’s sleep. The reason for the fact is that a proper mortgage can help you to outstand your loan even if you are somehow not able to pay it.

Don’t go for bigger EMIs

This is another of the point that you should certainly be keeping in mind. The fact to it is that you should never be going for bigger and higher EMIs as you are a first-time buyer. Try and optimize your EMIs up to a certain level and this will keep things straight. More to the fact is that invest and utilize your remaining money so that you don’t have problems facing EMIs. Try and cut shot the overall of your expenditures and this at all will help in flexing your EMI options.

 Optimize your budget 

This is the first and foremost thing that you ought to do. The reason for the fact is that while going for higher and better investments you should clearly optimize your budget. This is certainly something which at all will makes things flexible for you and won’t cost you contemplation. Try and optimize your budget in your level best and then risk investments. As you are a first time home buyer you should clearly optimize your budget and keep it up to a certain level. This is surely something that will help you figure out when to invest and where to invest.   

Choose the perfect location with your guide

This is another of the fact that you should be Cleary taking into view while choosing your house. The perfect location will bring the perfect price. The reason for the fact is that try and optimize your first time home buyers in the best place possible. The main factor behind this is that a perfect location will define your house in the most exquisite ways possible. Another point towards the fact is that when you would be reselling your house you will get the best of the prices. This would be just because of the location.

 

Thus here were the most exquisite steps for a first time home buyer. Try and optimize them in the best of the ways possible.  

Benefits of Repaying Higher Home Loan EMIs

Home Loan EMIs

The equated monthly payment is one of the biggest of the headaches that any of the customers endure. To make sure that all your debts are paid off as well as there remain sufficient funds to help you throughout the month is a tough job. Many of the lenders, as well as banks, have adopted schemes for the repayment of their home loans. The due EMI dates for engrossing home loans are kept quite close to your salary credit dates. This is done to ensure that there are sufficient funds in your account to repay the EMIs. Thus at all the whole process becomes quite harassing as well as confusing for both the lender and the customer. Thus here we list some of the best benefits to repay higher home loan EMIs.    

Lessen your EMI interest 

This stands as the major of the priority to undertake the repayment of higher home loans. The reason behind the fact is that the faster you repay your higher home loans the less would be your interest cost. Using a home loan calculator would make the understandings much better. The higher is your EMI and the faster will you pay it the less will be your interest credit. This stands a major factor in savings on your interest rate and thus will help to increase your credit score. Keep certain and prior things in mind and thus it accelerates both your savings as well as lessen your interest.

Faster repayment of loans

This is another of the fact that ensures you a non-frustrated morning. The reason for the fact is that the much faster you pay off your higher home loan the more will it be easy for you. Till the time a loan goes on it really affects your expenditure as well as keeps you worried throughout the month. Thus repaying your higher home loans faster cutting a bit of your expenditure will keep you tension free. This not only ensures the safety of your assets as well as the safety of your family.

 

Credit Score

This is another of the fact that makes the most out of repaying your higher home loan EMIs. Your credit scores, as well as your credit rating, improve a lot. The faster you will repay your higher home loans, the more will you be able to save. The reason for the fact is that a faster repayment of higher loans will, in turn, will churn your bank balance. This at all will maintain a faster growth of your savings as well as will ensure the bank balance up to the mark. Try and repay your loans as faster as you can to churn and get a higher credit score.  

 

Tax Benefits

This is the most proclaimed fact about higher repayments of home loans. The reason behind the fact is that any borrower who repays higher home loans faster can avail for tax benefits. These tax benefits fall under section 24, 80C as well as 80EEA under the legislated Income Tax Act. The benefits are propagandas over principal components as well as the interest of the home loan. The consumers, if the repayment has been done faster, can avail tax benefit up to Rs 2 lakhs and Rs 1.5 lakhs. These tax benefits are not available if you pay a lower EMI or EMIs with penalties.  

 

Accurate utilization of money 

 

The last but not least this header states the proper definition of utilizing your money. The reason for the fact is that if you have enough funds to raise a home loan use it in a better way. The main fact which goes behind this is investing your money in proper shares or funds. This will bring about worthier exchanges for you. This could also bring about the whole return of your home loan investment. Thus this could also be one of the best strategic options of repaying your higher home loans fast.  

Pros and Cons of Taking a Pros and Cons of Taking a Joint Home Loan

Joint Home Loan

Joint Home Loan is the best item among the Home Loan items accessible in the market. On off the chance that both the partner is working on the loan. Moreover, it makes it very reasonable to take a home advance mutually and contribute together to the EMIs. Joint home credits are in incredible interest nowadays because of the few advantages related to it. Furthermore, almost all the banks maintain on Joint Home Loan even if the possessions have a single proprietor.

 

PROS of Taking Joint Home Lone

 

Bigger home loan amount

 

Contrasted with the advance sum that affirmed to a solitary individual. The credit sum endorsed for a joint home advance is constantly more prominent. This is because adding a co-borrower to a home advance builds your qualification and subsequently. Moreover, you become qualified for a higher advance as a couple. This can benefit eligibility for home loans.

 

Tax benefits of joint home loans

 

We as a whole realize that specific tax breaks can benefit from a home advance. These tax breaks are accessible under area 80C for the key reimbursement and under segment 24 on the intrigue paid. Moreover, it helps to reduce the interest rate of the home in the long term. Most banks, as a rule, acknowledge women as co-candidates just if either the woman is the proprietor. The proprietor of the property in question or her salary has considered over while evaluating the credit qualification and reimbursement limit. 

 

Rebate on interest rate in joint home loans

 

The majority of the banks offer a discount on the financing cost for female home advance borrowers. Along these lines, to profit this advantage you can pick your significant other to be the essential candidate and designate you like the optional candidate. Doing this can give you the home advance on a lower loan fee when contrasted with others. 

 

Payment flexibility in joint home loans

 

It is important to have flexibility in joint home loan payment the applicant does not have an equal contribution towards repayment. Banks will consider obligation to-salary proportion as a sum of all co-underwriters’ money related standing. Fundamentally, rather than at least two individual assessments, they will include every one of your salaries and obligations. Moreover, it thinks about it as one substance. This is helpful in case you want to score better rates, higher odds of endorsement, or conceal for a financial assessment.

 

Cons of Taking a Joint Home loans

 

A lower credit score in joint home loans

 

In the event that when the borrowers cannot pay the EMI of the home advance. Overall, the FICO rating of both the candidates will fall and thus future acquiring will be hard for them. In case both the partners separated and divorce filled, proprietorship over the material goods becomes the reason to fight. Moreover, the credit of the interest is much lower in the market of the loans. 

 

The joint home loan is not for everyone

 

Overall, not every person can be a co-endorser in a joint home credit. In America, beyond what two individuals can pursue a joint home credit, yet there are conditions. They should be either your partner, kin, or life partner, and matured somewhere. In the range of 18 and 50 years of age. All co-endorsers will likewise be available during all credit-related strategies.

 

In the joint home loan, you will have joint property

 

Everybody needs to develop a winner in the event that grasping the hazard with your rights. Things being what they are, the individuals who sign the advance with you will likewise claim the property with you. This implies they legitimately get a state when you need to lease, sell, or do anything with the property. Moreover, you cannot simply bulldoze ahead when they would prefer not to do what you state.

 

Your credit can be affected by the joint home loan

 

Joint home loan reimbursements do not make the qualification between who pays the portions, as long as the portions being paid. Overall, if any of your co-endorsers neglect to reimburse a lot of the regularly scheduled payment, the onus is on you to reimburse the necessary month-to-month whole at any rate. Moreover, the hazard having your FICO rating demolished by the carelessness of the other party. As far, the bank is concerned, both of you neglected to pay adequately and potentially on schedule. 



Taking out a joint home advance may appear to be a simple pass to a progressively important bit of property. However, make sure to consider the other side of the coin too before bouncing in. 

How to Apply for Home Loan Balance Transfer

Today the home loan balance transfer is not a difficult task at all. After the emergence of the new private banks, it becomes very convenient to transfer your home loan balance. At first, let us understand the meaning of home loan transfer. Transferring home loans means transferring your loan balance to another bank with the permission of the first financer. In addition to that, this process of the transferring home loan refers that first donor finance institutes loan money has been repaid another financial institute, where the consumer wants to sift his or her loan

 

How to Apply for Home Loan Balance Transfer

 

 Your bank’s home loan interest is quite high relative to your expectations. Maybe you are frustrated because of the payments of the installments. Now at this moment, you cannot rely on your old banks which is demanding a lot of money from you. Besides that, the documentation process of your bank is really very hard and lengthy. Perhaps the interest rate is destructing your earnings as well. This is the reason you came to the conclusion that you should switch home loans in another bank which is giving more benefits. Now there are many options that relatively give better options to avail the refinancing home loan of other financial loan advancement companies. Well, we give some amazing ideas and also let you know the process of availing to switch home loans in other banks.

 

 Step 1 

 Savings of money 

 

  Fist analyses your requirements: Every individual has a different financial capacity. First and foremost, the matter of transferring home loans is to make a proper research. Several banks are offering district offers and money benefits. You need to choose which option is right for you. A few guidelines can help you to know how to transfer home loans.

 

  • At first, you need to clear the penalty charge of the former financial institutes which provided you with the loan. In this situation calculate whether the home loan transfer is making the benefit for you or not. If after calculating you feel that this process is not beneficial for you then you must avoid it.
  • Secondly, your loan is following the structure of the floating interest rate. Then if you alter your home loan to other banks, it may give the benefit to you.
  • Moreover, if the banks are giving the benefit of repaying the loan repayment for a longer period of the time limit, then refinance home loan may be beneficial for you.

 

 Step 2

 

Approach your former donor bank for NOC: If you determined that you refinance home loan, then you have to visit the first financial institutes for the no-objection certificates. Along with that, you have to withdraw your

  •   Foreclosure letter of from the bank or the financial institutes
  •   Then get clear details of the installments
  •   List of the documents which are required for the sift to switch home loan
  •  For the home loan transfer, you have to keep all the documents 



 Step 3

  

 Select and apply to the new financial institutes: Consult with most of the financial institutes including NDFCs. Even you can have a talk with your builder. Then choose accordingly according to your preferences. Since the process of transferring home loans totally different from one institute to another institute, proceed with proper knowledge.

 

 Step4 

 Complete your documentation and the credit approval: Finally, you must complete the documentation and credit approval.

 

The concept of home loan transfer developed around in the late eighteen centuries or at the beginning of the nineteen century when the whole world has experienced worldwide globalization and many new came into the whole world’s market and changed the traditional banking system

How to transfer home loan and the reasons behind it

An expanding number of borrowers are changing their home loans to more financially approved banks. It has been declared that there has been a 20 percent hike in transferring of home loans as revealed by the Economic Times. The switching of home loans means that the old lender pays off the old debts and then starts making EMI payments for the new debts. There is a way to transfer home loan let’s talk about it.

 

Why do borrowers switch 

People applying for home loans do often switch from a higher interest rate to a lower interest rate to make subsequent savings. Applying a higher rate of interest especially for home loans is not a good option. Thus people tend to change the lender to opt for a lower rate of interest. During the tenure of loans the savings rate increase of the debtor and thus it reduces the financial pressure.

 

MCLR

It is now proclaimed that all interest rates upon home loans are now completely based on the bank’s marginal cost and not the base rate of the bank. People may start opting for home loans from other non-financial institutes. However, in case, the interest is the socialist one and thus they may vary the interest rate as they don’t follow the concept of MCLR.

 

MCLR linked home loans 

If your bank is offering a higher rate of interest in home loans you must look for a lower interest rate. In no way, the existing bank is allowed to charge the repayment of the loans. It will be a better option if you choose banks whose interest rates are quite linked with MCLR.

 

Convert base rate to MCLR

The customers whose loans are solely under the base rate of the bank are further acclaimed to change it to MCLR. The borrowers whose loans are transfixed to the base rate can convert it to the MCLR mode. But customers can continue with the base rate if the loan is near to an end. If the difference of the MCLR and the base rate is high then it’s better for borrowers to convert their loans to MCLR. MCLR is best with banks offering lower interest rates. 

 

Why transfer

Lenders with their interest in the base rate can transfer their loans to banks with MCLR. It is far easy and helps in automatically transformation. It can be done by a single fee payment and signing some legitimate documents.

 

Things you should consider 

 

Timing

The customer should be evaluating the timing of their loans. Within the early tenure of the loan period, it should be done. The biggest thing you should consider before choosing is that it shall offer a lower rate of interest. Repayments get less in cost if the loan is transferred in its earliest period. 

Miscellaneous fees

You should go thoroughly through the processing fee and other charges. By well maintaining the stamp duties and the legal fees it is to be done. These are the fees that cost much more than the actual valuation of the loan amount.

 

Terms and conditions

Evaluate the terms and conditions well. It is often in the case that while transferring the loan amount the borrowers find it can be processed accordingly. The terms and the conditions are a narrow trap mostly for the customers who think of transferring their loans to another bank is quite suitable.

 

Documentation 

The steps involved are also documentation. Taking proper documents at the right time also helps in re-fixing the loan amount. Improper documentation leads to the misreading of the loan amounts and thus creates a lot of trouble.

How does balance transfer help 


Lower interest rates 

It’s less risky as a property is provided in the form of mortgages. It helps in availing for lower interest rates which are at all profitable for the lender. It also helps the lender summing up his savings. 

Ensures pre-payment

 The best mode of home loan transfer is that it ensures loan pre-payment and doesn’t block it. A lot of borrowers have this question in mind, does loan pre-payment get blocked. It gets ensured so the answer is no.

No complications

Applying for a home loan from one bank to another bank is quite an effortless job as it seeks no paperwork. Therefore it reduces the tension of documentation and more prominently there’s no confusion in it.

Induces savings

As with the help of the MCLR loans the rate of interest decreases and the tenure to repay also increases. Thus it helps the borrowers to induce their savings quite a bit.

 

 

Thus with these banks making advancements in technology home loan transfer is not a difficult job. While opting for a home loan you should consider a lot of things. Most prominently borrowers should go for lower interest rates and MCLR. Like the right paperwork, the right documentation is very much needed.

Things to consider before transferring home loan

Nowadays transferring home loan is not a big deal. People applying for home loans do often switch from a higher interest rate to a lower interest rate to make subsequent savings. Applying a higher rate of interest especially for home loans is not a good option. Thus people tend to change the lender to opt for a lower rate of interest. During the tenure of loans the savings rate increase of the debtor and thus it reduces the financial pressure.

Different kinds of loans

MCLR loans
MCLR loans are quite progressive now. These loans provide a quite lower rate of interest and further reduces the stress of the borrower. The MCLR is not in function with the non-financial organizations and thus they can change and re-change their interest rates. It is now proclaimed that all interest rates upon home loans are now completely based on the bank’s marginal cost and not the base rate of the bank.

Base rate loans
The base rate loans are the ones the borrowers should not opt for. These base rate loans increase the interest rate and are proportional to the bank’s marginal cost. Applying a higher rate of interest especially for home loans is not a good option. Thus people tend to change the lender to opt for a lower rate of interest. During the tenure of loans the savings rate increase of the debtor and thus it reduces the financial pressure.


Things to be taken into consideration before transferring home loan

Proper time
The customer should be evaluating the timing of their loans. Within the early tenure of the loan period, it should be done. The biggest thing you should consider before choosing is that it shall offer a lower rate of interest. Repayments get less in cost if the loan is transferred in its earliest period.

Fees
You should go thoroughly through the processing fee and other charges. By well maintaining the stamp duties and the legal fees it is to be done. These are the fees that cost much more than the actual valuation of the loan amount.

All the T&C applied
Evaluate the terms and conditions well. It is often in the case that while transferring the loan amount the borrowers find it can be processed accordingly. The terms and the conditions are a narrow trap mostly for the customers who think of transferring their loans to another bank is quite suitable.

Proper documents
The steps involved are also documentation. Taking proper documents at the right time also helps in re-fixing the loan amount. Improper documentation leads to the misreading of the loan amounts and thus creates a lot of trouble.

How does transferring home loan helps

It lowers the rate of interest
It’s less risky as a property is provided in the form of mortgages. It helps in availing for lower interest rates which are at all profitable for the lender. It also helps the lender summing up his savings.
Ensures pre-payment
The best mode of home loan transfer is that it ensures loan pre-payment and doesn’t block it. A lot of borrowers have this question in mind, does loan pre-payment get blocked. It gets ensured so the answer is no.
Fewer complications
Applying for a home loan from one bank to another bank is quite an effortless job as it seeks no paperwork. Therefore it reduces the tension of documentation and more prominently there’s no confusion in it.
Increases savings
As with the help of the MCLR loans the rate of interest decreases and the tenure to repay also increases. Thus it helps the borrowers to induce their savings quite a bit.


High top-up value


When contrasted with what is offered from home loan banks the advance repayment will be quicker with fewer sums towards intrigue. This will help in getting an enormous measure of advance for top-up necessities.
CBIL score
There no harm in the CBIL scores during the transfer of home loans. The process of transfer of the home loan from one bank to the other helps in keeping the CBIL score intact.
A lot number of options available
The transfer of home loans helps in transfer in a lot number of banks. This at all reduces the pressure of the burrower because this helps in creating a lot of number options for the burrowers to think about.
Reduces the monthly EMI at 5%
With the transfer of the home loan from one bank to the other, the EMI reduces at 5%. With the processing of MCLR, the transaction fee reduces and in addition to that Emi also reduces to 5% per annum.

Benefits of Home Loan Balance Transfer

Generally, home loans are compatibility more long-tenured loans as compared to other loans. This is the reason it includes the high principal amount. Therefore this is a matter of concern for the loan borrower as it continues for a long period of time. The rates which seem to be very low in the appearance, maybe it will cost you lacks hampering your total base outflow. Slight differences may create a huge difference in the net repayment structure. There are several Home Loan Balance Transfer are available nowadays. If you select it very consciously you can save a huge amount of money.

 

You feel like wasting your money when you find that your home loan structure is backdated and it seeking out more m money from you. With the induction of the new budget, we can see many benefits of lending the home loan. By transferring the home loan you remuneration the new financial budget benefits.

 

 Preferring and refinance home loan gives many unique benefits such as top-up of loan, Flexibility on the time periods of paying the installment many more. The reason behind this, you are a customer of another bank. Their motive is to bring other’s bank customers to their financial institutes. Different lenders provide different sorts of benefits refinances home loans. When you see a lot of savings in your pocket, you could able to understand refinance home loan is became one of the good decisions in your life.

 Here’s the benefit of transferring the home loan

 

The benefit of lower interest rate: 

The premier reason why people select a swift bank loan is the relatively low-interest rate. Other lenders give more monetary benefit on home loan transfers. This significantly decreases the EMI of your home loan. And thus you can understand your loan value is over wholly decreased.

 

You will get benefit out of the good track details:  

Good repayment is beneficial to get a transferring home loan money. Your track record is very admiration and if you refinance home loan may give you a great interest. Paying the installment simply becomes an advantage of your life.

 

After maintaining a good repayment record when the borrower opts for transferring home loan at that moment he can do a huge amount of negotiation in regard to their terms. Also, that person will able to decide the conditions of the home loan. Showing the payment records even you can increase your credit score and other financial parameters too. .People use this trick to obtain a low rate of home loan interest. Also, the loan borrower attains more financial benefits from the current lender.

 

Top-ups are at ease.

 In these days all loan advancing institutes gives the special attention to the home loan customers, if the home loan customers are satisfied, they will give number of references in their circle. Financial institutions such as the banks grant a top-up or refinance home loan on the means of transferring the switch home loan into those organizations.  Competitive rates and new fiscal offers under the fiscal budget you can adjust your preference. Paying off the immediate debts can make you more solvent so that you can even renovate your old home.

 If you follow the below-mentioned step you may get benefits on Home Loan Balance Transfer

  •  At first, be a tricky person. Talk to many financial institutions. Today, every bank is giving the doorstep service. You have to call them and fix an appointment. After that talk with them precisely. You can discuss the benefits they are giving just clear it out early. After that select your financial debtor.
  •  Secondly, when you are done with all the background research, go for the refinance home loan. How to do Home Loan Balance Transfer from one bank to another is already in your hand. Look for new opportunities according to new calendars. New-season and the market scenario can provide more details of the market as well as the selection.
  • Lastly, you will eligible to apply after a mandatory period of time as decided by the current lender.

How much can one save by transferring the home loan?

 

Multiple balance transfer apps are available on the internet. Of course, you can download one of them.

 Below the process of calculation savings on a home loan is described

  • Firstly put the initial rate of interest on which rate you have borrowed the loan.
  •  Then put the whole amount of loan
  •  After that, put the tenure of the loan 
  •  In the next step put the offered  rate of interest
  • In the last put the tenure of the loan
  • Lastly, you will see the Home Loan Balance Transfer savings.

Embraced modern technology has evolved the banking and fiscal systems.  Earlier people used to roam around the banks and the financial institutes to get the new loan. Meanwhile, these days the borrowers are regarded as supreme money generators of this new ear. Moreover, information technology is now fast and furious. That even track all the details of the customers such as credit score even on the internet.

What is the best way to pay off a home loan faster

Apply for loan online

Apply for home loan loan

On the off chance that you have the budgetary methods, consider gainful approaches to satisfy your home loan quicker. This will enable you to pay off your obligation trouble significantly. In addition, it will likewise enable you to avoid defaulting and will guarantee that you don’t need to spend on punishments or late charges.

Here are different manners by which you can satisfy your home loan quicker.

1.Part-prepayments

Making a couple of part-prepayments during the home loan tenor will further decrease the important that you owe thus, will diminish consequent EMIs. When your EMIs are lower, you can pay them on an opportune premise and clear your loan in a shorter length.

2.Pay a higher EMI if possible

It is probably the most ideal approaches to pay off a home loan faster. By paying marginally higher EMIs, you can shave off countless months or years from your loan period. The home loan purchaser must contribute his cash judiciously to create adequate assets and improve his value, to have the option to build the EMI sum.

3.Do not delay or miss your monthly payments

Avoiding your regularly scheduled payments won’t just haul out the surplus money from your fixed spending plan yet in addition your CIBIL score will go down.

4.Refinance into a Shorter-Term Loan

Choosing a short tenor may make you pay higher Home Loan EMIs. But this will enable you to clear your loan quicker. Likewise, in general, the measure of intrigue you pay will be lower when contrasted with what you would pay in the event that you pick a long tenor. Further, clearing your loan in a brief length enables you to acquire more obligation once more if the need emerges. This additionally helps your credit score.

 5.Use mortgage calculator

Mortgage calculators can help see how much home loan you can support. These are basic and helpful apparatuses and are anything but difficult to work. 

Documents required for a home loan

A home loan is basically an amount of money that an individual borrows from a bank or money lending company or any other source at a certain rate of interest that is to be paid with the necessary EMI every month or quarterly.But there are some documents required for a home loan. In this type of home loan, the property is taken as a security by the company for the home loan. The property can either be personal or commercial in nature. If in case, the borrower is unable to pay the dues to the lender on the due time, the lender will then possess all the legal rights to recover the outstanding loan amount by selling the property in question.

The necessary documents that are required for a home loan are more or less the same or the various banks out there, or Housing finance companies (HFCs) and other lending institutions. However, some specific requirements may vary from lender to lender. The documents required for various home loans might also differ on the basis of the scheme of the loan, the loan purpose, the credit profile of the individual asking for the loan, etc.

Some of the common documents that are required for a home loan:
  1. A complete Home Loan Application Form
  2. Passport size Photographs
  3. Proof of Identification like:
  • PAN Card
  • Passport
  • Aadhaar Card
  • Voter’s ID Card
  • Driving License
  1. Proof of Age: (Any one of the below)
  • Aadhaar Card
  • PAN Card
  • Passport
  • Birth Certificate
  • 10th Class Marksheet
  • Bank Passbook
  • Driving License
  1. Proof of Residence
  2. Income Documents, for both salaried individuals as well as self-employed individuals.
  3. Property Documents, etc.

So, all the above documents are the most important documents that you will require for availing a home loan. You must make sure that you have all the necessary original documents with you before you apply.

Eligibility Criteria to Apply for a Home Loan

Buying a home is a phenomenal step indeed. Buying a home, after all, can be a source of anxiety and frustration for an individual and also a huge sense of accomplishment. Moreover, with the increasing rates of the properties out there, it is getting more and more difficult for many people out there. Therefore, the majority of the individuals may have to apply for a home loan in order to avail of a home. Actually, a home loan is one of the biggest liabilities. Also, by considering the huge amount of loan and the long term tenure, these are one of the biggest loans that a person takes. However, home loans also come with a number of significant benefits.

But, every borrower of a home loan, definitely needs to meet the eligibility in order to qualify for a home loan. Also, these eligibility criteria ensure that he or she can repay the loan amount without putting much effort and without defaulting.

Furthermore, if you fail to meet the eligibility criteria, then you may have faced rejection for the home loan application. Apart from that, also, it goes without saying that, it might leave a negative mark in your credit profile.

Some specific, as well as most common home loan eligibility, are as follows:

Eligibility Criteria to Apply for a Home Loan

Age Limit of Salaried Individuals

23 to 62

Age Limit of Self-Employed Individuals

25 to 70

Required CIBIL Score for Home Loan

Minimum 750

Work experience of Salaried Applicants

Minimum 3 Years

Business Continuity

Minimum 5 Years

Minimum Salary

Rs. 25,000 or above

Nationality

Indian as well as, Residing within the Country

As a matter of fact, the salaried individuals out there can avail up to Rs. 3.5 Crore as Home Loan whereas the self-employed applicants can apply for up to Rs. 5 Crore.

Therefore, you must know the proper and detailed Housing Loan eligibility criteria and documents required for a home loan before applying for the same.