5 Power Points to make sure that you get the home loan

5 Power Points to make sure that you get the home loan

Points that help you enhance your home loan eligibility:

Before you apply for a home loan,  knowledge of the factors that affect your home loan eligibility criteria is necessary which includes:

  1. Applicant’s age
  2. Applicant’s income
  3. Credit score
  4. Location of property
  5. Market value of property
  6. Repayments capacity, etc

1. Build a strong credit score:

So here are certain tips and points that will help you enhance these eligibility factors, increasing your probability of getting a home loan.

A strong credit score helps the applicant avail for lower interest from the lenders side. A strong credit score also signifies and strengthen your disciplined financial record as proof. Even if you are not familiar with the term of credit score or are a complete novice to it, just learn and remember to limit your credit card usage to apply for a home loan.

2.  Choose a longer re- payment tenure:

Opting for a shorter loan repayments tenure, in the mindset of repaying the amount back can be a daunting task, as shorter tenures call for higher EMI rates.  Even though you are financial capable of re- paying your loans in a short tenure, choosing for longer duration is a wiser choice, which can be followed by making prepayments and also foreclosing the loan once you have accumulated the funds.

3. Opt for joint home loans:

Opting for joint home loan ventures with your co- applicant who also has a stable income increases the approval chances of getting a home loan. Moreover, getting a co- applicant increases your chances of getting higher loan amounts. Also, if a woman is first loan holders or as co- applicant ,the interest rates offered are comparatively lower under special women housing loans by many banks.

4. Pre pay existing loans as much as possible:

As per RBI guidelines, home loans lenders can charge finances up to 75- 90% of the property’s value, also known as LTV ratio. Out of this the borrower has to make a down payment which is up to 10-25%.  The tip suggesting the higher your down payment the lower your LTV ratio to be, which is essential to boost home loan eligibility and increase chances of approval.

5. Decrement your FOI ratio:

Fixed obligation to income ratio (FOIR), is the proportion of your income, that being used for the repayment of inevitable expenses. Loans are probable to get rejected on ground of higher FOIR. Hence its reduction to about 30-40% is mandatory for improving your eligibility criteria.


The ultimate steps to apply for a home loan is known by all, but the essentials of doing so depends on how eligible you are. By following these points, there is a sure short chance of empowering your eligibility criterion for getting a home loan from any financial institution.

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