Individuals who wish to have a home of their own will require housing finance to realize this dream. Here, banks, Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs) are the best sources for housing finance. Applying for a Home Loan requires one to search for the most suitable scheme as per their profile and apply to the right lending institution offering the most feasible terms and the best benefits. Before applying, a prospective applicant should check the eligibility criteria and required documents for Home Loan. Every bank, HCF or NBFC has its own eligibility criteria and documentation requirements which are more or less unique for them. So, the applicant should check the same individually and then apply.
In the sections below, we have given a guide to the basic formalities pertaining to the eligibility requirements and the documentation involved with a Home Loan:
The credit score of the applicant is an important part of availing a loan. Lending institutions always check the score and past repayment history of the applicant as a parameter of the financial credibility of the applicant and how likely he/she is to repay the loan availed as per the decided schedule. An important aspect worth remembering here is that applying to multiple lenders to increase chances of availing the loan tends to bring the credit score down.
The stability of income & employment, age, and existing liabilities collectively decide the eligibility for the Home Loan.
Among the documentation requirements, salaried and self employed applicants will have to submit valid proof of identity, age, address, and income. Self employed individuals will also have to provide proof of business existence.
Depending on which bank, HFC or NBFC the applicant is applying the loan from, the documents required will vary.
Know more about the same from the reference given below: Required Documents and Eligibility for a Home Loan Application
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.