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NEW DELHI: Buying a house of your own is not that simple. And you might opt to apply for a home loan to make that dream come true. But the amount that you are eligible for the loan might not be sufficient enough. So to come out or tackle such a situation, one needs to work out ways and increase the eligible amount and buy a house of their own. The applicant is required to go through the important factors that are mentioned below in order to increase their home loan eligibility:
Increase the loan tenure: The home loan eligibility is calculated on the basis of the applicant's repayment capacity on a monthly basis. By increasing the home loan tenure with the same monthly repayment capacity, one can borrow more money for the home loan. But don't forget that by increasing the home loan tenure you would end up repaying more interest amount.
Clear the outstanding liabilities: If an individual has other outstanding debts, loans or liabilities, then their chances are less for increasing the home loan eligibility. The EMIs paid for the other liabilities are deducted from the monthly repayment capacity resulting in decreasing the loan amount. So one must try to repay these loans and liabilities from other sources to increase the home loan amount. And this is only possible if the amount of debt or liability is within the individual's reach. Under normal circumstances, around 15 to 18 remaining EMIs are considered repayable.
Combine the family income: If an individual's income is not enough to get the required home loan then he or she should try to combine the incomes of other family members for repayment of the loan that makes a positive impact. The acceptable combined income from the family includes the income of father, mother, children or spouse.
Step up loan is an option: By choosing step up loan as an option one can pay a lower EMI in the starting and gradually increase the EMI as the tenure and the source of income progresses with time. The eligible home loan amount is calculated on the basis of a higher income than the current earnings. Also, young professionals or those who have just started their careers can invest in property by choosing step up loan.
Count all the profits and bonuses: Except for the basic salary, one must include his/her extra incomes and gains that are provided by an employer. This would increase the eligible home loan amount and will have a positive impact on the repayment capacity. Extra incomes include performance bonus or additional pay for overtime. Moreover, this option varies from bank to bank.