The age of the applicant is one of the most important factors determining the eligibility for home loans. A younger borrower is considered to have higher repayment capacity than a person who is older or unemployed. A home loan is usually for a long period of time, which means fewer EMIs and a smooth repayment process. You can boost your FOIR by making additional income or by improving your credit score. The longer your tenure, the better your chances of getting approved for a home loan.
The type of employment you have will affect your eligibility. Banks take a very keen interest in the income and expenses of salaried borrowers, self-employed professionals, and other professionals. The ratio of your current liabilities to your income will determine your eligibility for a home loan. If you change your job frequently, this may also reduce your home loan eligibility. Make sure you meet the eligibility requirements before applying for a new mortgage. However, if you have had a recent job loss or have an ongoing credit card debt problem, you should still consult a bank.
You can increase your home loan eligibility by closing existing loans. You may be eligible for a higher loan if you have recently been laid off. Another factor that will affect your home loan eligibility is the type of employment. If you are a salaried employee, you will need to have two to three years of experience to qualify for a home loan. If you are self-employed, you must be in business for a few years and have enough cash profits and revenues to file your taxes in the name of the business. Regardless of your type of employment, your academic credentials will be a good indicator of your potential career success.
If you already have a home loan, you should consider whether you can afford the monthly payments. Your existing loan balance will decrease your repayment ability. If you currently have a high debt-to-income ratio, you will likely be declined for a home loan. Fortunately, there are several ways you can boost your credit score and avoid rejection. So, start working on improving your credit score today! If you have a low credit score, you can still buy a house without having to worry about your financial situation.
Aside from your income, the size of your loan is also a consideration. You must be able to pay the loan within your means. The higher your down payment, the lower your monthly EMIs will be. This will help you get the best possible home loan eligibility. In addition, the larger your down payment, the more likely you’ll be approved for a mortgage. You’ll have a much higher chance of being approved for a loan if you have a high-quality down payment.