How To Increase your Chances Of Getting A Home Loan

In most of the cities, the property prices have been witnessing a downward trend in the recent year. Owing to this situation, the people have got an opportunity to buy a home. However, some of the home buyers would face difficulties on getting a home loan. Here are some of useful tips and suggestions to increase your chances of getting a home loan.  

Plan your Home Purchase in Advance 

 It is smart to plan your home purchase one-two years in advance, as it gives you a plenty of time to increase funds and helps you to do a comparison of the existing home loan interest rates from several banks. By doing this, you can get a competitive interest rates. 

 Get a Co-Borrower for you Loan

  If you have an annual income that doesn't suit the eligibility criteria of the home loan then you can get a co-borrower for your home loan to ease your burden. Also, this will help you to get a higher loan amount from the bank. A co-borrower can be your parents, spouse, siblings and parents.  

Clear your Credit Card Bills  

There is a chance of your home loan getting rejected if you don't clear your credit card bills. These credit card dues will be tracked by credit bureaus such as Experian and Cibil.  Thus, it is important to improve your credit scores before you apply for a home loan.  

Avoid Adverse Entries in your Bank Account

 As every bank will ask your 6 months bank statement, it's advisable to avoid irregularities such as bounced cheque and a missing EMI. Your home loan may get rejected if the bank finds any discrepancies in your bank account statement.

Have Required Documents in Order

 Before applying for a home loan, you must ensure that you have all the following documents in order;

1.  A passport, driving licence or voter id, Aadhar Card, PAN card ( for identity proof) and any other documents required by the bank.
2.  Last six months bank statement where salary or income is credited ( for both self-employed individuals and salaried).   
3. Latest three months salary slips  
4. Income Tax returns for the last two years  

Choose a Reputed Builder to Buy Home

  As the  reputed builders will have a tie-up with the leading banks, your chances of getting your home loan will increase. Further, a bank will be concerned about the project location and from which builder you are going to buy an apartment or individual house.