Check points before applying Home Loans.

There are various factors considered for the eligibility of housing loan. Though Reserve Bank of India has already outfitted some of the strategies for the eligibility of loan but there are different criteria drafted by the banks to determine the eligibility of housing loan. The following factors should be considered by the customers before applying for the home loan.

1. Information filled in application form.

Firstly, information given by an individual in application form should be correct. In case of incorrect information, the loan application will cancel. As the information is demonstrated by different sources like through calling up the individual, interviews,
confirmed from the database etc.

2. Financial status

Secondary important factor is financial position of an individual because of the repayment ability of an individual which totally depends upon the financial position. The minimum income helps in determining the loan amount. The credit history helps in determining the eligibility.

3. Personal Profile

Thirdly, the factors like educational qualification, profession, number of dependents, assets owned, liabilities payable, investments history etc also plays an important role in determining the repayment capacity of an individual.

4. Age of an individual

An individual age is also considered while fixing up the EMIs & loan tenure. In case of co-owned property, the co-owner cannot be a minor.
The retirement age is also considered. For example, if the applicant is 45 years old and his retirement age is 60 years, the maximum loan tenure available will be 15 years.

5. Reputation of the builder

The builder status also matters a lot. List of pre-approved builders is available with each bank. And such loans are easily available for their properties.

6. Property Loaction

Banks have definite rules with respect to a minimum area of a flat too. This may be built-up area or carpet area. So property location also counts in determining the eligibility.

7. Age of the property

While purchasing the existing properties, age of the property is also an important consideration.

If resale property is less than 50 years old then only home loans are sanctioned. Banks carry out legal and technical evaluation of the property to see whether the title of the property is clear, there are no ownership disputes, the property is free from hindrances etc.