Your decision to purchase your first property is a very
important and a life altering one. Not only do you have to be adequately
prepared, in terms of finances, you have to ensure that the conditions are
right for your home loan application to go through smoothly. Here are five
factors that could become an obstacle if not taken care of on time.
When you apply for a home loan, it is a given that you are
getting into a financial commitment for the longer term. While you do your best
to prepare in terms of getting your papers in order and getting the funds ready
for the down payment, your bank also must put you through a rigorous credit
assessment process to ensure that lending to you entails the minimum amount of
risk. Here are five factors that may impact your chances of getting a home loan
negatively. Your profession and tenure of work all lenders will try and ensure
that a borrower has steady source of income for a relatively long period of
time.
This means that if you have skipped too many jobs in the
recent past and do not have at least a year’s salary slip to show as income
proof, your home loan application may be put on hold. Further, lenders prefer
traditional industries when it comes to the choice of borrowers. They are not
too impressed with new age entrepreneurial ventures that so many young people
have either started themselves or are a part of such teams.
Some lenders are also wary of lending to what they believe
are jobs fraught with uncertainty. Thus lawyers, media professional and those
employed with the police department may find it a tad difficult to get a home
loan.
A poor CIBIL score Your CIBIL score can be a make or break
while applying for a home loan. First up, if your CIBIL score is less than 750
(out of 900) your application may get rejected right away. There are also other
factors in your CIBIL report that may raise red flags for a prospective lender.
These are, too many enquiries or too much credit that you have availed of in
the recent past. This indicates two things.
Firstly, that your repayment burden is already high and
secondly you are credit hungry in nature and thus may not make for a very
reliable borrower. Other factors such as too much unsecured credit (credit
cards and personal loans) may also hamper your chances. To avoid any such
hassles, make sure that you have not applied for any new credit at least six
months ahead of applying for a home loan.
Also, in order to avail of an Online Home Loan,
maintain good credit behavior with your existing credit. This means, you must
make the payment of all your credit card outstanding in full each month and
make timely repayments on your existing loans. Also maintain a good mix of
credit (secured and unsecured loans) to ensure that your CIBIL score and CIBIL
report are creditworthy.
[Source:http://www.moneycontrol.com/news/loans/five-factors-that-could-impact-your-home-loan-eligibility_4588741.html]
