Home : 7 Facts Which May Affect Your Home Loan Eligibility
Chapter #10 of Digital Loan Series by WhatsLoan (powered by DigiMusk)
When you start young, you have little or no idea about home loans. Few are lucky enough to have insights from parents and they stabilize their income flow and improve their consistency and the credit score.
But there are many others who realize the repercussions later. You’re not told these things that influence your financial decision in the long term. You’re just advised to have a good job at the end of your graduation and stick to your job even if it sucks the hell out of you. And you keep cursing your parents to push you for the job and you don’t realize what is the importance of being consistent in your job. There are multiple other facts that help you reach your dream of owning a house but only if you know early.
Keeping yourself aware about the facts will help you reach your destination earlier and smoothly. Owning a home is one of the common and the biggest dream of most of the people. But the journey till owning the home is not easy. It takes a consistent route, it takes a defined path, it asks you to be frugal, it asks you to save more and a lot more.
Here in this chapter, we are helping you with 9 such facts that may affect your home loan eligibility if not considered on time.
1. Start Young
Your “Age” does matter a lot. The farther you are from your retirement age, the easier you can convince the banks that you will repay your loan on time. You also get a good timeline to repay your home loan “the loan tenure”.
2. Job Hopping
If you have switched jobs frequently, it may affect your home loan eligibility. Reason being this reflect your inconsistency to remain at a single workplace for long and indirectly will raise a doubt on your consistent earning potential.
3. Credit Score
Before processing your home loan application, the banks look after your credit score that reflects your repaying pattern. This also showcase how disciplined you are with your borrowed money and how committed you are with your payments. Any delay in repaying the borrowed money greatly affect your credit score and in turn will affect your home loan eligibility.
4. Number Of Dependants
If your income is not good enough and you have more number of dependants, then you may not be able to save much to repay for your home loan. As such, this situation asks banks to hold the home loan application and not process further.
5. Corporate Job or Self Employed Professional?
Banks favor people who are in the traditional corporate job as compared to people who are self employed. There lies an uncertainty in the income flow for the self employed people. But if you are able to showcase a consistent income flow account statement for last 3 years, banks will consider processing your home loan.
6. Age of Property
If you have chosen an old age property to purchase, chances are high that the banks will do an independent evaluation. In such cases, loan applications are very less processed owing to structural damages to the property with the time. If feasible, consider choosing a new property or a builder that has partnership with the banks.
7. Any Existing Loan
If you have an existing loan, the lender will subtract this EMI to compute your repaying potential. This may affect your home loan eligibility if your income is not good enough to carry both the loans at the same time.