Home Loan is the preferred financing tool of borrowers to fulfill their dream of getting a home. Therefore, it becomes all the more important for the borrower to pay it off responsibly. Further, experienced lenders provide the loan on an easy-to-meet Housing Loan eligibility terms & conditions so borrowers and lenders can build trust.
So, let’s find out how your eligibility for the loan affects other terms -
#1 Age of the applicant is of importance as it helps the lender decide the tenure for the loan. For instance, if the applicant is 30 years of age he or she can opt for a loan tenure of 20 years and pay it off completely by the age of 50. This makes their profile highly preferred by the lender, given the fact, it meets other terms of the loan too.
#2 Apart from being the right age if the applicant has stable source of income lenders are willing to trust them. They believe that the borrower is financially sound to pay off the loan and thus can avail high value loan amount.
#3 Eligibility affects interest rate of Home Loan too. This is because the loan might not always be taken to buy a house but also to invest. This in turn determines the duration and interest rate for which the loan has to be availed for. Where both interest rate and duration affects the loan repayment.
Furthermore, lenders also take into account the credit history of the applicant. A good credit score of 750+ or more is an indication of an applicant’s creditworthiness. It tells the lender that they have a consistent track record of paying off the dues and thus will be responsible towards the loan. Moreover, lenders offer a chance to negotiate loan terms to borrowers with good credit score. Where, borrowers can request for higher loan amount at easily manageable interest rate and flexible repayment tenure.
Reference Read: How Home Loan Eligibility Determines Your Tenor and Interest Rate
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.