For an average buyer, taking a home loan is necessary to raise funds for building or buying a house. Getting a loan sanctioned isn’t a piece of cake. It’s not rocket science either. A simple mistake might deprive you of your chance to get your loan sanctioned. You wouldn’t want that right? Well here are a few tips to help you out:
- Pay off earlier debts: when taking a new loan, it’s always better to start anew. If you clear off all your earlier debts and keep a clean slate then the chances are that you might get your loan sanctioned pretty fast. Nothing more positive like a new beginning!
- Assess your financial condition: once the past is sorted, let’s get to the present. It’s important to thoroughly analyze your current financial situation. Evaluate whether you are in a position to regularly pay back the loan without fail. We wouldn’t want a bad credit score, do we?
- Maintaining the credit score: the credit score is quite critical when it comes to loans. Before giving a green flag for your loan application, the lenders would obviously check your CIBL score which takes into consideration your investments, previous loans, dues, etc. To maintain a good CIBL score, it’s important to have a clean financial record. And a good credit score heightens the chances of loan sanction. Try to submit only a single application as this also gives you leverage.
- Higher down payment: paying at least 20% of the property cost as the down payment is a good way to start. This means that you will only have a lesser amount to pay back. This might help you bag a lower interest rate along with an easier loan sanction.
- The co-applicant feature: getting your family to be a co-applicant of the loan might increase your chances of getting it. If the co-applicant is also earning then it’s even better. This gives the bank a certain assurance that you are capable of paying back the loan on time.