Tips To Get A Higher Amount For Home Loan In 2022
2022 is here, and with this new year, it’s time you set yourself ready to fulfill your dream of owning your house. While the loan application process has become convenient with online applications attempting to outpace the conventional brick-and-mortar banks and lending institutions, not much has changed regarding eligibility, sanction, and the loan amount disbursal. However, here are a few hacks that may help you secure a higher amount for your home loan application.
Tips for Higher Home Loan Amount
Following are the tips to get a higher amount sanctioned for your home loan:
- Higher CIBIL Score: Your CIBIL score is your creditworthiness and past credit performance in 3 digits. A higher credit score shows higher repayment capability. Therefore, always try to maintain a higher credit score. It not only helps secure a higher loan amount but can also grab you the lowest home loan interest rate and favorable terms.
- Proper Documentation: Adequate documentation, as the lending institutions require, provides the data necessary to assess your eligibility. As a home loan requires minimum documentation like income proofs, bank statements, ID proofs, and address proofs, furnishing such minimal documentation is not a mammoth task and thus is an easy way to secure a good amount.
- Higher Income: Higher income means higher EMI repayment capabilities. A higher loan amount increases the EMI. If your income is insufficient to showcase your high EMI repayment capacity, you would have to compromise with a lower sanctioned amount. Therefore, always strive to have income from multiple sources.
- Reduce Other Debt: The loan amount you can get sanctioned may reduce even though you have a higher income if you have existing debt commitments. Existing outstanding debts, current EMIs that you are repaying, etc., chew away a portion of your income that otherwise would have been available for your home loan EMI repayment. Therefore, keep your debt to a minimum to secure a higher home loan amount.
- Co-borrower: A co-applicant can do wonders for your home loan application. It reduces the bank’s risk as the bank considers the income of both the applicant and the co-applicant while considering the loan application. Thus, it denotes a higher repayment capacity, leading to sanctioning the higher loan amount.
- Top-up: It is for existing borrowers. If you already have a home loan and want extra funds, you can apply for a top-up. If your lending institution is not ready to provide the top-up, you can consider the balance transfer (BT) facility. You can transfer your outstanding loan to another bank or financial institution and simultaneously apply for the top-up through BT. However, go through the foreclosure and associated charges before applying for the BT.
A higher loan amount reduces the down-payment burden of homebuyers. While the lending institutions have set parameters for the maximum amount of financing they can provide, the chances of securing a higher amount of loan can increase manifold with the above points. If you are willing to apply for a home loan, pre-plan your finances before the application. With the home loan EMI calculator, you can get the exact amount of EMI that you will need to pay by just entering the loan amount, home loan interest rate, and tenure. Apply now and secure a high loan amount for your dream home.