How to Use a Home Loan Eligibility Calculator
Home loan applications differ from those of unsecured loans as these are for high-value, long-term mortgages. Because of the amount of finance involved, lenders usually have strict home loan eligibility terms and reject applicants that don’t meet the mark.
To avoid this, it is recommended that you prepare for your application by using a home loan eligibility calculator. This tool helps you get a better idea of whether you qualify for funding, and if so, for how much.
To know more about home loan eligibility criteria and how to use a home loan eligibility calculator, read on.
Steps to using a home loan eligibility calculator
Using a home loan eligibility calculator is easy and requires you to simply enter accurate data into the respective fields. Here is a breakdown of the steps to follow when using the Bajaj Housing Finance Limited Home Loan eligibility calculator.
Enter your birthday in the field marked, ‘Date of Birth’
Choose the city of residence using the dropdown menu
Input your income or use the slider bar
Enter your monthly financial obligations/ expenses/ EMI in the final field
The calculator will automatically calculate your eligibility and display the loan amount you’re eligible for.
When generating the loan amount the calculator considers your age, city, income, and fixed expenses. This is because these factors determine your ability to repay and the city determines, to an extent, the market price of the house.
General home loan eligibility terms
Apart from checking how large a loan amount you are eligible for; you should look up the other eligibility terms listed by your lender. This ensures that your application isn’t lacking in any way. To help you prepare, here are a few general criteria you should try to meet for the best outcome.
- Be between the ages of 23 years and 70 years
- Keep fixed financial obligations below 50% of monthly income
- Be salaried or self-employed
- Have an income history of at least 3 years
- Have a CIBIL score of 750 or higher
Also Read : A Brief Introduction to REO Property Investment
You now have a better understanding of the general home loan eligibility terms and how to use the calculator. However, when applying for a housing loan, you shouldn’t be satisfied with simply meeting the bare minimum requirements. Your goal should be to put your best foot forward, and this means improving your eligibility for the loan.
Here are a few tips to follow:
- Disclose all income sources
- Clear any existing debt beforehand
- Apply for a housing loan with a co-applicant
- Rectify any errors in your CIBIL report
Housing loan application procedures can be quite stressful as most lenders are strict about their home loan eligibility protocols. For this reason, it is recommended to check your eligibility beforehand and investigate your financial profile for areas that could do with improvement.
Doing so, in combination with gathering all the documents required for a home loan, will help you get through the process smoothly, without hurdles. If you’re looking for a truly hassle-free experience, consider the Bajaj Housing Finance Home Loan.
This feature-laden home loan assures you of quick processing and extends doorstep document pickup services for speedy approval. Here, you only need to meet the simple home loan eligibility terms and furnish minimal documentation to get loan processing underway. Once approved, you can get up to Rs.3.5 crore as a sanction, based on your financial profile.
What’s more, this sanction is available at a competitive interest rate and for a flexible tenure that ranges for up to 30 years. This allows you to tailor repayment to your capabilities and optimize your interest outgo. To enjoy maximum benefits and ease of access, apply online for this housing loan.