Everyone can go for a home loan. Yet, everyone does not have the same capacity. One may want to buy a home worth Crores while the other may be seeking a home worth Lakhs. So, there is a wide gulf differences. However there are obvious marks regarding the Home Loan Eligibility.
First comes here, the cost of the property albeit home on which your loan legibility depends a lot. You have to put a part of the cost of your home as the down payment or the margin money. The money you need to put here may serve as the stake in its continued maintenance. Or, otherwise, if the value of the house gets into a surge, this money is to ensure that the bank’s outstanding balance of the home loan remains lower than the market value of the property. So, if you are going to buy a property worth 5 Lakhs, you are to pay at least 50 thousand or 75 thousand as the down payment while the lender of the home loan will advance loan up to a whopping amount of 4, 25000.
Yet, your home loan eligibility depends very much on the income itself. The more you earn, the closer you are to the home loan eligibility or in clear terms, you can grab more from the home loan. However, given this is not the ultimate criterion for home loan eligibility, it depends a lot on other bars also. Suppose your income is worth home loan of 6 Lakhs and you are going to buy a home priced around 5 Lakhs, the bank will restrict your home loan amount at 4, 25,000.
Your home loan eligibility depends much on the down payment you are to make and the down payment itself depends on several other factors like the age of the home and other things. Age of the home is important because most of the banks put a cap on the age of the building which is to be bought. They won’t let you have the loan for a long period if the home is old enough. There are yet again, lenders who are reluctant to give home loan if you are going to have the ownership in the form of power of attorney. This kind of ownership sounds fishy in terms of home loan eligibility. So, to grab the home loan with enough eligibility, one should mind these few facts.
By : Meghna Arora
