Purchasing a house can be both exhilarating and exhausting. Aside from the issue of choosing the appropriate property in the right area, you may be dealing with some financial concerns, such as how to get a home loan approved faster or what stages are included in the home loan approval process.
Yes, we all know that most of these concerns can be handled with a little forethought from the very start. In this article, we have simplified the procedures and outlined the important factors necessary for a speedier approval of a house loan.
- Have a Strong Credit Score
This first step requires you to have a good credit history. For you to achieve this, you’ll have to start early & be consistent with your bill payments.
The applicant’s credit or CIBIL score, which ranges from 300 to 900, is one of the most important elements influencing your home loan approval. If you have a high CIBIL score, preferably 700 or above, lenders may be ready to ignore certain minor flaws and issue you the loan solely on the basis of your credit score.
This is due to the fact that a good CIBIL score demonstrates your punctuality in making loan repayments. As a result, lenders will be confident in your capacity to repay and making getting a CIBIL score near 900, the most effective strategy to have a loan authorised swiftly.
- Know Your Financial Condition
The second step would be to have an actual estimate of your current finances. Knowing your repayment capability is critical for approving your loan application. As a result, it is critical to examine your resources to determine whether you can comfortably repay the loan. One of the primary conditions for obtaining a Home Loan is the timely payment of your EMIs.
- Gather Funds for Higher Down Payment
When you apply for a house loan, you must pay a portion of the property’s cost out of your own money, and the lender covers the remainder. You should make the largest down payment you can afford. This reduces the amount to be borrowed, lowering the overall loan cost and term. The less money you borrow, the less money you will have to repay. Remember that you must return the loan amount, as well as the interest rate and other fees. As a result, taking out the smallest loan available will help you save money over the course of the loan.
- Get a Co-Applicant
Obtaining a co-applicant is one of the lesser-known techniques to increase your reputation as a borrower and expedite your home loan approval. A co-applicant is a member of your immediate family, such as a parent or spouse, who has a steady income and can help you repay the loan. Having a co-applicant might boost your loan eligibility since the lender will combine your income with the income of your co-applicant to give better loan conditions.
- Fill Your Loan Application Form Very Carefully
It is critical that you carefully fill out each section of your home loan application form. A single error or disagreement in your loan application may result in a direct loan refusal. Read the form carefully and fill in your information carefully to secure a quick approval with no issues.