With the current real estate prices, it becomes difficult for any individual to purchase a property without the help of a home loan. This is because solely relying on their monthly income and savings might not prove to be enough for financial coverage. The good thing is that there are numerous loan plans that help in funding a property purchase. However, before applying for one, it is important to be aware of the housing loan eligibility criteria that lenders set for those looking to get such loans.
There are many aspects that financial institutions rely on when it comes to setting their home loan eligibility. These include an applicant’s monthly income, age, location, employment record, credit score, and so on. The easiest way to determine your eligibility for a home loan is to make use of a home loan eligibility calculator. This calculator is a tool that is available online that displays the loan amount you can get. By using this calculator and being aware of the loan amount that the lender can offer, you decrease the chances of facing a loan application rejection.
How does a home loan eligibility calculator work?
Borrowers can easily determine their home loan eligibility by using a home loan eligibility calculator. All that is needed is to fill up fields requiring information on your date of birth and the city of residence. Next, the calculator will need details of your net monthly income, additional sources of earning (if any), monthly debt obligation, as well as the home loan’s repayment tenure.
Now, for most borrowers, a home loan is the biggest loan they are ever going to apply for. This makes it essential to be ready with a steady financial plan to clear the loan without any difficulties. This requires you to be aware of the loan amount that the lender will agree to provide based on your eligibility. After using the home loan eligibility calculator, you can decide whether the loan amount is a suitable option or not.
Importance of using this calculator
In the past, there have been borrowers who have got their home loan applications rejected simply because of the fact that they were unaware of the lender’s eligibility criteria. Now, it is also important to note that too many application rejections can never be a good sign for any lender. This is why it is so important to make use of a home loan eligibility calculator, as this tool will help in displaying the loan amount that you can get. If you are comfortable with the loan amount, go ahead and apply for the home loan. However, if not, you can keep the search on for a better loan plan.
Once you are aware of the loan amount to apply for, do note that it is also essential to understand the loan’s monthly instalments. For this, it is advised to use a home loan EMI calculator, which displays the loan’s EMIs based on the loan’s principal amount, interest rate, and repayment tenure.