September to December are popular months to buy a home, given the festive season. Many view this as an auspicious time to make a significant purchase, such as a house. For many, this may be their first home, upon which a lot of family and expectations rest. This is why it is important for this purchase to go smoothly and seamlessly with zero hassles in terms of funding and property choice.
To help you buy the house you dream of, there are plenty of competitive home loans in the market. These secured loans allow access to larger loan sums without limiting your property choice due to budgetary constraints.
The trending rate of interest on home loans start as low as 8.30% pa, with EMIs working out to be as small as Rs 755 per lakh only – making for a reasonable amount to put towards your home loan monthly without jeopardizing your other financial priorities.
However, to be eligible for such competitive offerings, aspiring home loan borrowers need to ensure that they meet the lender’s basic lending prerequisites – to vouch for their creditworthiness. To assist in ensuring that you are good match for the lender, be sure to follow the three tips listed below.
3 things to keep handy for a hassle-free home loan application
Getting a home loan can be very easy, if planned for well – but where does one start their planning and research? That too can be an intimidating process if you go at it without any guidance. To help you find the right home loan for your dream home, here are the three things you should have handy.
Your credit report
CIBIL score and credit report are essential to initiate home loan applications, as well as the subsequent credit appraisal report from the lender. Your CIBIL score considers the following factors:
- Repayment history
- Credit utilization patterns
- Ongoing debt obligations
- Routine financial obligations
- Current income sources
These are all important demarcations of your financial stability and creditworthiness and help determine your current CIBIL score. Lenders appreciate a minimum credit score of at least 750, to be able to sanction loan sums that are sizeable. Being assured of your financial credibility allows the lender to approve your home loan request with more flexible terms. A good way to approach this would be to request your credit report well before you plan on making your home loan application. This will ensure that you have ample time to rectify certain aspects of your report – if they need your attention.
Prepare a cash flow statement
If your home loan request is quite large in size, ensure that you have adequate documentation to support your financial stability and ongoing obligations. This will enable you to assure the lender of your repayment capacity and intent to repay the loan.
This activity is not just for the benefit of your lender but will also help you understand your budget and repayment feasibility. Apart from liquid savings, one can have several investments and assets – it is wise to read our finances and take stock before applying for a home loan. By doing so, you can tailor your home loan application to suit your repayment capacity, ensuring you adhere to your EMI schedule without erring on timeliness.
Keep the required documents ready
Most lenders have a common set of required documents for home loans, which is easily available on either their websites or even on the internet. A simple search online should be enough to give you an idea of the type of documents you will need to submit. This will hasten the process of your home loan approval, and subsequently, disbursal. Here are some documents lenders typically request:
- KYC related documents
- Address proof
- Payslips (of 3 months for salaried individuals)
- Bank statements
- Latest ITRs
Most of these documents are easily available with us – one just needs to have a thorough checklist to ensure they’re all consolidated into one folder. Having everything ready beforehand will help you avoid last-minute searches and hassles.
We find that a lot of home loan applicants are better off when they do their due diligence. This is because they ensure that their application is well supported by the necessary eligibility parameters. If you feel confident about making your home loan application after going through this checklist, apply for a home loan today. You will own a home of your own at the earliest.
