An investment in a home or property requires huge capital, one that is not particularly easy to gather within a short time-period. It is even more of a hassle when you are a salaried employee as you have a fixed source of income. Thankfully, you are covered by home loans that are offered by most leading banks. A home loan lets you fulfil your dream of owning your own home though an easy process.
There are several essential factors that you must understand when you plan on investing in a property through a home loan. As a salaried employee you must meet the eligibility criteria laid down for this group of loan borrowers.
Are you eligible for home loan?
There are three major factors that affect your eligibility for a home loan. This includes age, the gross income and minimum qualifications. You must be between 18 to 60 years of age. Additionally, most banks also need you to have a minimum salary of INR 20,000 per month. The salary will also determine how much money you can loan. You will have to meet a minimum qualifications requirement too, depending on your type of employer.
It is also essential to achieve the four Cs when applying for a home loan. The character record should be clear and lenders usually depend upon the verification carried out by the employer. Capacity is determined by how well the borrower can pay off the EMIs in the given tenure. A good capital is important as a down payment and can reduce the total required home loan amount. The condition of the current company and the stability in the organization is another major determiner of eligibility.
Assessment of the application
The one question that may loom over your head is, “How will my application be assessed?” Banks ascertain the eligibility of your profile by carefully scrutinizing the different documents that you generate. The current running loans history and the credit report too are sourced to reveal the repayment behavior of the borrower.
Required documents
The required home loan documentation is typically uniform for most leading banks. The essentials include passport size photographs of the applicant, identity proof in the form of official government-issued cards, residential proof, employment and salary proof, details on running loans, bank statements and income tax returns. You will also have to submit documents of the property for which you are availing the loan.
Now that you know the requirements for getting a home loan, ensure that you sort out all the relevant documents carefully. It is also a good idea to have them reviewed by a professional consultant before submitting the application. The chances of having your home loan are much higher when your documents are accurately presented.
