Purchasing a home is one of the top 5 decisions you will ever take in your lifetime. We say this not because it involves a lot of money but there is many more factors that need your attention like proximity of the new house towards your workplace, your children’s school, medical facilities etc.
After calculating all of these parameters, you can zero in on a location that suits everyone and then begin with the home loan process. But before you could apply you must find out if you are eligible for a home loan or no.
Did you know that eligibility is the first most important step in the loan process? Yes without being eligible enough, you cannot get to apply for a home loan. This eligibility depends primarily on your income history, credit profile and existing relationship with the bank. To get a clear picture, we have listed down the eligibility requirements needed for a home loan. Although this might not be the entire list of requirements as each bank has their own criteria. You can use this list as reference and accordingly be ready.
Age: In order to be eligible for a home loan, you need to be minimum 18 years old and to a maximum of 60 years. For self employed professionals, this age can be pushed to 65 years.
Income: Usually Banks will provide you with up to 60 times of your net pay or EMIs offered up to 50% of net income as the loan amount. Means if you have a monthly net income of 25,000 then you can get 15 lakhs as the loan amount.
Type of employment: You must be either of Salaried, Self Employed Business, Self Employed Professional to apply for a home loan.
Employment History: You need to be in your current profession or business for minimum 12 months and have a job history spanning minimum 24 months.
Credit History: You need to have a good credit history and also a credit score which is termed good as per the Banks. In most cases a score upwards of 750 gives you good leverage.
Property requirements: According to the type of property being purchased, your loan amount eligibility will change.
Hence home loan eligibility must be taken seriously as without this, your loan application will not be entertained by any Bank. If you require help in understanding your home loan eligibility and want to get the best deal on home loans, visit Ruloans today.