If you are also about to buy a house or flat and are going to apply for a home loan, then there is news of work for you. Before applying for a home loan, you need to do some important homework. If you do this work first, then you will not have any problem later and you will be able to manage the budget of every month well. Let’s know these special tips.
Can give more amount
If you apply for a higher loan amount, the bank may refuse to approve it. Find out how much loan you are eligible for. Once you know, you can plan for the rest of the downpayment amount.
The project in which you are buying a house or flat, make sure that it has all the regulatory clearances. You can check in the list of the bank whether that project is listed or not. These also help in getting the home loan approved quickly.
Apply in the bank where you have an account
It is better to apply for a home loan where you have a savings or salary account. If the bank already knows your credit history and personal details like company, salary, etc. then it takes less time to complete the KYC process. You don’t have to wait much.
Credit score is important
In most cases, banks consider your good repayment record and credit score (CIBIL score) as the basis. This allows your loan to be approved quickly. Sometimes banks also provide cheap home loans to those with good scores.
Do this work if you need more loan
If you need a higher loan, but your salary does not allow it, you can apply for a joint loan with your spouse/parents/siblings. If you want, you can choose a longer tenure for loan repayment. This will reduce the EMI of every month and the budget of the month will not be affected.
Make sure you know how much you can afford through monthly installment (EMI), as home loans are long-lasting. Subtract all your expenses including other loan and credit card payments from your take-home salary to know how much you can spend as a home loan EMI. This will give you an idea of your EMI affordability. Generally, banks allow EMI up to 40% of your take-home loan salary.