Most of us take home loans to build or buy a house. But many times when we go for a home loan, the bank refuses to give the loan due to a weak credit score (CIBIL score) or lack of regular income. Apart from this, it is also seen that due to these reasons, you are not able to get the loan as much as you need. In such a situation, today we are telling you about some such things, by adopting which you will be able to get a loan easily.
The CIBIL score reveals the credit history of the individual. In the case of loans, banks definitely check the CIBIL score of the applicant. A credit score is determined by several specialized credit profiling companies. In this, it is seen whether you have taken a loan before or how you have used a credit card, etc. The credit score of an individual is determined by repayment history, credit utilization ratio, existing loans, and timely payment of bills. This score ranges from 300-900, but a score of 700 or more is considered good by the lenders.
By adding a co-applicant, that is, taking a joint home loan, the risk of the lending institution reduces. This can be someone who has a stable income and a good credit score. The loan amount will not increase unless they add well-earned co-applicants. Adding co-applicant increases the chances of getting the loan approved. Apart from this, both the applicants will be able to take advantage of an income tax deduction on taking a joint home loan.
A low loan-to-value (LTV) ratio can make it easier for you to get a loan. This means that you have to keep your contribution more to buy a house. Choosing a lower LTV ratio increases the buyer's contribution to the property. This reduces the risk of the bank. At the same time, the low EMI increases the affordability of the loan. This will increase your chances of getting a loan.
If you do not have a regular income or have a poor credit score, then you should apply for a loan in the same bank where you have an account or fixed deposit (FD). Getting a loan can be easy if you apply for a loan from the same bank.
When we apply for a loan in the bank, the bank also sees the Fixed Obligation to Income Ratio (FOIR). This shows how much installment of the loan you can pay every month. FOIR shows what percentage of your current income like EMI, house rent, insurance policy, and other payments are already going. If the lender takes all these expenses up to 50% of your salary, then he can reject your loan application. Therefore, keep in mind that the loan amount should not exceed this.
Banks keep on providing better offers to the borrowers from time to time. In such a situation, before taking a loan, find out about the offers of all the banks. Because taking a loan in a hurry can prove to be wrong for you. Do your research before taking a loan.
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