Owning a house holds tremendous sentimental value in the eyes of a first-time homebuyer. But although a memorable moment and a lifetime achievement goal, purchasing property is also a huge financial decision and getting carried away with emotions can create blunders. For the majority of first-time buyers, applying for a home loan is the only way to fulfil their dreams without burning through their savings. Simultaneously, lenders have started offering a wide range of home loans along with affordable home loan interest rates and home loan EMI calculator which guarantees easy approval and complete transparency.
But doing your homework and going prepared can further promote speed approvals. So, follow these simple tips to get ensure quick disbursals.
- Understand the Types of Home Loans
Lenders offer three main types of home loans based on the preferences of the applicant- a fixed-rate loan, a floating rate loan and a combination loan. As the name suggests, fixed-rate loans include predetermined home loan interest and floating rate or adjustable loans possess interest rates set by the lender’s benchmark. A combination loan offers loan seekers both loans in parts. So, choose the right home loan for yourself depending on your income, cash liquidity and so on.
- Take Care of Credit Report Errors
Your credit score or CIBIL score is the most important asset in availing a home loan. It is essentially a record of your financial history and signifies your credibility in repaying the loan amount. Hence, it is important to maintain a good score and make sure there are no discrepancies in your credit report. In case of errors, contact the lender for accurate details or get in touch with CIBIL to remove these inaccuracies.
- Get a Co-Applicant
Getting a co-applicant to sign on for your loan can increase the chances of approval because lenders allow you to club your and your co-applicant’s net income. So, even if you don’t have enough resources to qualify as an eligible borrower for the loan, the combined income can be a saviour, especially if the co-applicant has a sizeable income. Moreover, if your credit score is low, your co-applicant’s income and financial stability can bridge the gap and increase your chance of approval.
So, there you have it, a few easy tips and tricks that you can enforce to guarantee approval. And as a bonus, we recommended applying for unsecured home loans to avail loans without worrying about collateral. Most NBFCs like Tata Capital offer a wide range of unsecured loans with high home loan eligibility, flexible EMI and home loan EMI calculator to help you buy your dream house without any restrictions!