Home loans were not as prevalent a few decades ago as they are now. Most homebuyers relied more on savings than financial institutions for home financing. However, the trend has reversed in recent times, and an increasing number of people are now opting for home loans for house purchase.
Before you opt for one, you need to learn all about the various aspects related to such credits. Additionally, you must keep all the required documents ready. Learn more details on home loans, how to apply for them and documents required for a home loan before applying.
How to apply for a home loan?
Home loans are the best option if you want to purchase a housing property or renovate the existing one. In order to apply for a home loan, first, you need to look for a reputable financial institution.
The next step is learning how to apply. For home loan online apply, you need to follow the mentioned steps:
- Visit the lender’s official website and fill out the application form online.
- Their representative would get in touch with you to take the procedure forward.
- To book a specific offer, pay the fee securely via online payment methods.
- Gather all the scans of required documents and upload all of them.
Before proceeding with the application, you must check home loan eligibility criteria to ensure that you are eligible for a home loan. All these minute details are to be kept in mind so that your home loan application is approved at the first go itself.
How does home loan eligibility calculator work?
You can check your eligibility for a home loan without any hassle using an online eligibility calculator. The calculator will instantly compute the value, and you would get to know how much credit you can apply for.
It is significant that you calculate the amount so that you do not face any issues when it comes to financial planning, and this would also reduce the chances of your application getting rejected.
Factors required to calculate eligibility:
- Property value
- CIBIL score
Apart from learning all the documents required for your home loan approval, you need to know how to use the online calculator.
How to use the online calculator?
- Enter your date of birth in the required format.
- Provide your location.
- Insert your monthly income.
- According to your repayment plan and financial situation, set the tenor.
- If you have other sources of income, input those details as well.
- In case you have existing debts, clear the EMIs.
Ensure that you provide with the correct information to get accurate results. Recheck the details carefully before you check home loan eligibility.
What are the documents required for a home loan?
Necessary documents include the following:
- Address proof
- KYC documents
- Identity proof
- Bank account statements for the past six months
- Latest salary slips
However, if you are self-employed, you must provide with a report that proves you’re your business has been running for a minimum of 5 years. Ensure that you make a list of all the documents you need for a home loan before filling out the application online.
These specifications might differ slightly from one institution to another. Thus, you need to keep an eye on such details to avoid any obstacles in the procedure.