.

follow-on-google-news

The Home loan eligibility calculator is an effortless way to understand your eligibility for a home loan. Banks and NBFCs take income, tenure, other sources of monthly revenue, pre-existing debts, affordable EMIs, etc., into account when determining your eligibility for the loan.

So, if you’re interested in buying a house, you can quickly use this calculator to check if you’re eligible by inputting these fields. Additionally, it helps you in making an informed decision. It prevents loan application denials, ensuring that the entire process is as stress-free as possible.

Eligibility for Home Loan cover image

What is a Home Loan Eligibility Calculator?

It is an online tool that quickly estimates your eligibility for a home loan by taking into account your income, debts, other sources of monthly revenue, affordable EMIs, etc. This way, you can make an informed decision and prevent loan application denials that would otherwise negatively impact your credit score. It’s also an excellent tool for figuring out the lowest home loan interest rate.

Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon! Get the book now!

How do I calculate my home loan eligibility?

To calculate your home loan eligibility, simply input your monthly income, debts, other sources of monthly revenue, and the desired EMI into the calculator. It will show you the amount you are eligible to borrow.

Factors that affect your home loan eligibility

No matter where you are in the world, loan companies will always base your eligibility on whether or not they think you can repay the debt. In other words, home loan eligibility is merely a judgment made by the lender. Lenders take into account these factors: 

Age

The low home loan interest rate is one of the essential aspects. It decides how long the loan will take to be repaid, affecting your mortgage payment. The shorter the duration, the lower your mortgage EMI will be, and vice versa for a given loan amount and interest rate.

The Nature of your Income

Determining how much you can spend on your loan each month starts with assessing your monthly income. Accounting for other financial obligations will give you a better idea of what’s left over to repay your loan via EMI (equal monthly installments).

Your Prior Loan Commitments

Your current debt obligations influence your eligibility, just like any other monthly expenditure removed from your existing income. After that, a percentage of the EMI amount set for home loan repayment is figured out.

Your Credit Report

The lender evaluates your credit report to decide if you are likely to repay the loan, which is an essential factor in determining whether to approve or deny your loan application.

Regulatory Guidelines

The NHB also has maximum loan restrictions that depend on the home cost percentage. This figure varies depending on the property

cost; for example, lower costing homes would be eligible for a higher limit.

How can I improve my home loan eligibility?

There are a few things you can do to improve your home loan eligibility, such as:

  • Paying off any outstanding debts 
  • Increasing your income 
  • Decreasing your desired EMI 
  • Finding other sources of monthly revenue.

Documents required for a home loan

The documents required to apply for a home loan vary from bank to bank. However, most banks will require the following documents:

  • Proof of identity (passport/ Aadhar card/ voter ID card) 
  • Proof of address (utility bills/ ration card/ passport) 
  • Income proof (salary slips/ Form 16) 
  • Property documents (sale deed/ property papers) 
  • Bank statements 
  • CIBIL report.

How can I get my home loan sanctioned faster?

There are 4 things you can do to increase the chances of your home loan being sanctioned quickly:

  • Make sure you have all the required documents ready 
  • Compare different banks and NBFCs before applying for a loan 
  • Choose a bank with which you have had a good relationship in the past 
  • Apply for a loan online.

In Closing

Now that you know how to calculate your home loan eligibility, it’s time to implement this information. You can use your home loan eligibility calculator to understand better what you can afford. This tool takes all the guesswork out of the equation and provides an accurate estimate of the amount you could borrow.

Therefore, once you have this figure, you can start browsing for houses within your budget or contact a lender to start the application process. Remember, the sooner you start planning for your dream home, the sooner you can make it a reality.

Advertisements