Do you want to apply for a home loan for residential property in Mohali?

Well, Banks go through a comprehensive procedure to determine the applicant’s eligibility for a home loan. Based on the applicant’s profile, which includes their income, type of employment, credit score, and other factors, the bank or lender also determines the maximum amount that is eligible, as well as the interest rates.

In this article, we have explained some crucial tips that help to boost your eligibility for a home loan so that you can have a loan for the luxury flats in Mohali for sale.

Add A Co-Applicant

You can increase your eligibility for a 3 bhk flats in Mohali home loan just by including a family member who is employed, earning a good salary, and has a strong credit rating as a co-applicant. Doing this can increase the maximum amount of loan that you can borrow from the bank because your affordability to pay EMI will incline. Some lenders may combine family members’ incomes when determining a borrower’s eligibility for a home loan.

Try To Maintain Your Credit Score Of Above 750

Since a high credit score indicates a good repayment capacity, having a better credit score, preferably around 800, can increase your eligibility for a home loan. A high credit score can also get you a loan with a reduced interest rate. Additionally, you should frequently check your credit score so that you can improve your score if necessary and prevent loan rejections. 

Pay Back Your Debts Consistently.

Sincere debt repayment can contribute to a high credit score, increasing your home loan eligibility. Moreover, you should also have some investments and money, which could improve your eligibility for a home loan.

Open A Bank Account With Your Favoured Lender.

If you have chosen a lender after researching several lenders and weighing their merits, it is a great idea to open a bank account with them. You should do this at least a year before applying for a home loan so that you have enough time to get to know the lender and build good relationships. Your likelihood of getting a house loan will rise if you get a good relationship with the lender.

Declare Your Extra Income Sources

Declaring your extra source of income can be very helpful for you while having a home loan. Doing so might increase your eligibility for a house loan because it shows that you have a greater ability to make repayments.

 Select A Longer Tenure

Selecting a more extended period for repayment of your tenure can help you increase your home loan eligibility because the amount of EMI will be lower, so you will probably make timely payments. Your housing loan eligibility will be improved because the lender will see a more negligible risk in lending to you. Although on the other hand, it can result in paying a higher interest rate throughout the course of the loan.

The Bottom Line, 

Some people think that raising a good credit score for a home loan is a complex task; however, if you follow the tips given above, you will most likely qualify for a loan for your dream home.