Buying a house is an expensive affair, and this is one of the biggest financial hurdles that an individual has to face. The funds required to buy a house can usually not be relied upon solely on savings. This is where applying for a home loan can help. A home loan provides the financial support needed to make a property purchase. Now, there are various home loan plans that lenders offer. But before you apply for home loan, it is important to first be aware of the eligibility criteria set by lenders for these home loans.
Financial institutions consider various factors while setting the home loan eligibility criteria. These factors include an applicant’s monthly income, age, employment status, CIBIL score, and so on. To make it easier, it is better to make use of a home loan eligibility calculator. This calculator will help in displaying a loan amount that you can be eligible for. By using this, you can effectively avoid getting your loan application rejected by the lender.
Role of a Home Loan Eligibility Calculator
Getting too many loan applications rejected is never a good thing as lenders view this as a negative sign. There are applicants who get rejected simply because they are not aware of a lender’s eligibility criteria. This is where a home loan eligibility calculator is useful. The role of this calculator is to help borrowers know the loan amount that they are eligible for based on their profile. If the displayed loan amount is satisfactory, you can go ahead and apply for the loan. If not, keep searching for other plans until you find one that is suitable.
How to use this calculator?
First, start by filling up your date of birth and city of residence. Once this is done, the next step is to fill up information with regards to your net monthly income, additional sources of income (if any), monthly instalments of any other existing loans, monthly expenses, as well as the repayment tenure of the home loan. After this, the housing loan eligibility calculator will display the loan amount that can be approved by the lender based on the information that you provided.
Buying a house is most probably going to be the biggest expense of your life. This is why it is of the utmost importance that you are aware of the loan amount a lender will agree to offer. This is because you need to be prepared with the finances to cover the rest of the amount required for the property purchase from your savings.
It is common for borrowers to mainly focus on the EMI payments of their home loans. While this is definitely something that needs to be thought about carefully, it is equally important to first be aware of the lender’s eligibility criteria. Do note that the housing loan eligibility criteria could differ from lender to lender, which is why it is important to check with your lender about their specific criteria.