Rightfully called the ‘City of Dreams,’ Mumbai is a magnet for migrants. From one-of-a-kind dining and shopping experiences to mesmerising beaches, the city delivers on all fronts. Speaking of beaches, who wouldn’t wish to own a luxurious suburban home in this city! Do you also want to purchase a home in Mumbai, but are strapped for cash? If so, then apply for a home loan online!
But, first, get to know the primary eligibility factors of availing a home loan in Mumbai.
Age of the applicant
There’s a vast difference when you apply for home loan as a 25-year-old and as a 47-year-old – a lender will see both applicants in a different light. The younger applicant will have higher chances of home loan eligibility and accessibility because of the more number of years they have with them for housing loan repayment when compared to an applicant who is nearing retirement.
Moreover, applicants in their late 20s and early 30s have fewer health risks, higher expected salary bumps, etc. and as such, may be offered with a tenure as long as 30 years! However, it is crucial to remember that with a longer tenure comes higher home loan interest outgo.
Stability of income and employment status
There’s a straightforward relation between your income and home loan eligibility. Lenders want to be sure of your home loan repayment capability, which is tied to your income. And not just that, they want to rest assured that your employment or business is a stable one. Having a history of job-switching and an irregular ROI may become a challenge in housing loan approval by presenting you as a high-risk borrower.
CIBIL or credit score
CIBIL or credit score is one of the most crucial home loan eligibility determinants. It is a score assigned on a scale from 300 to 900 based on your credit history. Your CIBIL score takes into account factors such as your repayment history, type of past loans taken, credit behaviour, etc. For a hassle-free home loan borrowing experience, ensure that you have a CIBIL score that is at least 750, preferably above.
Lenders adjust home loan interest rates based on your CIBIL score. Those with a high CIBIL score may be offered low home loan rates, and those with a low score may either be charged high-interest rates or their application may be declined.
Value of the property
Often an understated factor, the value of your property is also vital to home loan eligibility. Lenders will only extend you the amount they feel your property is worth – buying a house that is high-value means higher eligibility and vice-versa. Factors such as your property’s location, the strength of its foundations, its interior and exterior condition, etc. are also taken into consideration. Your home loan lender will have inspection officers come to your property premises to help determine the actual value of your property.
Finally, to help determine your eligibility, you can use an online home loan calculator such as the home loan eligibility calculator.
Are you planning to take a home loan in Mumbai? Before taking the plunge, be sure to check both eligibility and affordability. Free and easy-to-use online tools such as the home loan EMI calculator can help you out. By using an EMI calculator for home loan, you can plan out your EMIs and adjust values to come at a suitable figure.
Also, choose your lender wisely – one who offers easy home loans with the most competitive home loan interest rates in India is the ideal one.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.