Getting home loan sanctioned is a must thing as you the aspiring home buyer requires financial funding to buy a abode. But, before getting the loan sanctioned the applicant is required to submit the loan application form which is assessed by the lender and the lending institution is the one who lets you know the exact loan amount that an aspiring home buyer can avail. So, keep in mind the below-mentioned points and increase the chance to avail the maximum amount of a home loan:
1. Income of an Applicant
A lot can be done by availing a handsome amount of home loan. So, you required to have a standard monthly income in order to get a maximum amount of loan sanctioned. In fact, it won’t be wrong say that a loan applicant’s earning plays a pivotal role in getting a loan sanctioned as this factor is also considered as a part of eligibility criteria. Usually, the lending institution assumes almost 40% to 50% of an applicant’s monthly income available to repay the loan amount. Remember that an EMI slab of your loan repayment will increase as per the salary. Thus, those falling under high income group can secure maximum amount of a home loan and the lenders also directs them to pay a hefty amount of loan payback amount.
Another key thing to remember is that the disbursal of a loan amount differs from lender to lender as the sanction eligibility is also different for the salaried and the self-employed applicants.
2. Impact of an Ongoing Loan
If you have an ongoing loan then either wait for its completion or else pay-off the outstanding bill. This is so because lender firstly deducts your current EMI from the loan disbursal amount as the applicant is bounded to repay the current loan which means that the loan you are expecting to get sanctioned will automatically halt at a low amount. Thus most of the financial experts suggest you close the ongoing loan before applying for a fresh home loan.
3. Applicant’s Age and Retirement tenure
The retirement age of a salaried person is 60 years and that of a self-employed borrower is 65 years. A lender always considers this point whenever he/she receives a file for loan sanction. Remember than a home loan longs upto 20 years and thus the financial lender check your remaining service years as the loan amount widely depends on your year of retirement.
4. Advantage of Co-Borrowers
Two loan borrowers are better than a single loan applicant. This is so because the loan amount is calculated by considering the income of both the main borrower and the co-borrower. You can get an additional benefit of availing maximum loan amount by applying for a loan with a co-borrower. Here, you must remember that all joint owners of a property should get included as the co-borrowers even if they separately earn. Also, it is not mandatory for a co-borrower to have a share in the property.
5. Time-frame of the home loan
You can decide the tenure of a home loan as at the end the applicant has to repay the loan. So, the high EMIs you pay the short span of home loan you can avail. Similarly, the paying of small EMIs means having a long-run home loan. So, look at your earning, saving and the budget while deciding tenure of a home loan. We also suggest you deposit a lumpsum amount as a chuck of few EMIs as it diminishes the loan amount and reflects as a huge relief to you as the loan amount comes down.