[vc_row][vc_column width=”2/3″][vc_column_text]Owning a house is a dream for many. There are many aspiring homeowners out there who are saving every penny to make this a reality. The two ways to buy a home are to save up or to go half-in-half i.e., your saving and a loan from the bank.
Yup, you heard it right. Taking a loan will help you in making your dream reality faster. If you want to meet the cost of buying a house then taking a loan is the best option. However, it is definitely not easy for you to get your loan approved. Wondering why? A loan is not a small sum, so banks have to consider a lot of factors to avoid borrowers’ default and bad debts.
Even missing a single detail in your home loan application can result in rejection of your application. So make sure that you do not miss out on a small detail because it will only take you a little farther from your dream of owning a house. Also, it will definitely affect your credit score. If you do not want that to happen then make sure that you present every single detail as requested by the lenders.[/vc_column_text][vc_column_text]So do you want to know tips for getting your home approved? Yes, then what are you waiting for. Let’s jump in now.
Examine your financial condition
First thing first, you must know your financial condition well before you attempt at applying for a home loan. You can take a close look at your finances to analyse your financial situation. Analysing is important to make sure that you will be able to pay your EMI’s timely. Because the home loan gives you the support you need to purchase a property but you have to make the payments timely if you do not want it to affect your credit score. Having a bad credit score will make the lenders little vary to lend you. Also, the lenders have the requirements of a minimum salary to lend you a home loan. So you must know your paying back capacity to make a decision whether you’re taking a loan or not.
Know your credit score
As you have understood by now your credit score has huge importance in your home loan approval process. Your credit score depicts the creditworthiness. Simply put, it helps the lenders in understanding your credit history. So if your credit score is low, it is quite hard to get home loan approval. Your application will not even be screened if you do not submit a credit score.[/vc_column_text][vc_column_text]
[/vc_column_text][vc_column_text]However, there are only a few people who actually check if their credit score is qualifying. It is just a matter of minutes to pull your credit report. So maintaining a good credit score will benefit your home loan application. The only way to keep a good credit score is to never miss your payments. Always remember that one of the key things for getting your home loan approved is maintaining a clean credit record.
Your limits
As you have already examined your financial situation, so you know what part of your income can you afford to pay for your EMI’s. Since you have chopped down that part, this step will go as smoothly as possible. So you must draw your limits. Because if you do not set a bottom line it can be quite hard for you in the future. So set a limit of how much you can actually pay for your home loan repayments.
Be realistic and whatever the amount you want to be your limit add 5-10 percent for the amount as a buffer. Based on these calculations you can actually see how much you can repay each month and based on that amount you will know how much you can borrow. Also, there are many loan calculators that you can use to find the accurate amount.
Compare different lenders
Do not just go with the first lender that you come across or that approaches you. Compare the rates between different lenders, if you do not want to end up regretting paying more than you should. Comparing will help you in finding the best deal within your range.
While comparing consider all the important factors such as repayment tenure, interest rates, EMI’s, processing fee, client-servicing charges, etc. Your decision should not be based on one single factor. Take all the factors into consideration and choose a lender that goes well with your financial situation.
Stick to your budget
You must have been a laid back individual till this date. However, now it is time to create a budget and stick to it. Also, you can just do it one month before your home loan application and pray that your application gets approved. Because there are low chances of it happening. So create a budget, change your spending habits and most importantly make sure that your credit score is good.
You must have savings to because the lenders will see your capacity to save and also to make a deposit. Also, remember that the best way to lower your loan-to-value ratio (LVR) is to pay a large deposit. So create a budget and stick to it successfully for 6 months before you actually apply for the loan. A budget will improve your financial health and take you a step closer to getting your home loan approved.[/vc_column_text][vc_column_text]
[/vc_column_text][vc_column_text]Conclusion
These are a few tips that will help you in getting your loan approved. Apart from these make you always read the terms and conditions properly. It is highly important for you to know what you’re signing up for. Also if you do not want any surprises in the future in the name of processing fees, etc review your loan agreement properly.
If possible take expert advice, as they deal with many cases like you they will give you the best possible advice and help you in cracking the best deal. So take these steps into consideration and get a step closer to make your dream house a reality.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text el_class=”post-contact-form”][fc id=’2′ align=’center’][/fc][/vc_column_text][/vc_column][/vc_row]