Looking to Get a Higher Home Loan Amount? Here’s How You Can Do That by Improving Your Eligibility

Real estate prices rarely seem to lower, as most people complain. Most homebuyers need to rely on home loans to buy properties. Now, while a home loan is a great way to get the required finances for this purchase, it is also essential to understand the loan amount that the lender can agree to offer you. This would depend on your eligibility for a home loan. If you are not satisfied with the loan amount being offered, do not worry. There are effective ways in which you can improve your housing loan eligibility. Take a look:

Home Loan

1. Pay off existing loans

It is never good to apply for a home loan while already paying off existing loans. This is because such a case increases the lender’s risk. If your income is already focused on paying off other EMIs, you might find paying off a home loan’s EMIs challenging. This is a negative sign for a lender, so paying off any existing loans before applying for a housing loan is better.

2. Declare all additional sources of income

Many borrowers have more than one source of income. This can help in giving their home loan eligibility a good boost. Multiple sources of income can lower the debt-to-income ratio, which means that it is less likely for the borrower to miss out on their EMI payments. So, it is best to declare all additional sources of income to your lender.

3. Maintain a strong credit score

An applicant’s credit score is one of the first things a lender looks at while evaluating a loan application. It is considered ideal for keeping a credit score of 750 or more. One can do this by paying off their bills on time and not defaulting on any payments.

4. Avoid going for a short repayment tenure

Some borrowers might prefer a short repayment tenure to clear the loan sooner. However, this means that the monthly installments would be higher. This can be a risk for the lender, increasing the borrower’s debt-to-income ratio. So, to boost your home loan eligibility, opting for a long repayment tenure is better.

5. Apply for a joint home loan

If a borrower is concerned about insufficient monthly income, applying for a joint home loan is better. With two co-borrowers each earning an active monthly payment, it increases the chances of the loan’s timely repayment. These are a few ways a borrower can boost their home loan eligibility. Also, do not forget to use a home loan eligibility calculator to understand the loan amount a lender can offer.

Jeffery D. Silvers
Love and share my articles, I will be happy to react on it ! Spent 2002-2009 promoting weed whackers in Edison, NJ. Earned praise for importing junk food for fun and profit. Spent 2001-2006 exporting teddy bears in Atlantic City, NJ. Had some great experience investing in tattoos in Fort Walton Beach, FL. Spent 2002-2007 selling action figures in the aftermarket. Enthusiastic about working on basketballs on the black market.