For individuals who want a paperless transaction, digital technology has provided a new form of online lending. Thanks to the mobile loan-application process, you may now apply for a housing loan using only your smartphone.
A mobile loan features a digital lending process. It covers the complete procedure, from applying for a home loan to verifying the applicant’s credentials, and if granted, the funds are transferred to the bank account within a few days. Moreover, the applicant is not required to visit the bank even once during the transaction. Keep reading to learn how to apply for a home loan using a lending app successfully.
The Key to Successful Home Loan Applications
Today, an increasing number of bank clients use lending applications to apply for urgent personal loans. It is a secure and convenient method of securing funds. However, not all applicant’s loan applications are approved. For those concerned about your eligibility, here are some pointers to help you quickly qualify for a home loan.
- Pay High Down-Payment
Before applying for a house loan, determine the property price and compute the EMIs you need to pay based on the current home loan rates, tenure, etc. Most home loan companies lend roughly 80% of the property price, with the applicant bearing the remainder as a down payment. If you are doubtful about your loan eligibility, it is best to make a larger down payment. A higher upfront payment results in lower monthly instalments and increases your credibility before a potential lender. In addition, this increases your chances of receiving a loan instantly.
- Maintain a Good Credit Score
Most lenders evaluate an applicant’s credit score to assess his current financial condition, credit history, and how much loan he can repay currently. Your credit score indicates your financial health and demonstrates your repayment capability. You must take practical actions to maintain a high score, such as:
- paying off your credit card debts.
- Pay off any other debts
- avoid changing jobs frequently.
- Similarly, multiple loan applications could have a detrimental impact on the score.
Credit scores above 750 are preferred by banks and make it easier for you to obtain a loan quickly.
- Apply For Joint Loan
If your income does not qualify you for a housing loan on your own, applying for a loan with a working co-applicant increases your chances of success. The co-applicant can be your working spouse or any other earning member of your household. Banks combine the applicants’ two earnings, increasing the likelihood of repayment.
- Get Necessary Documents Ready
Another reason for getting a loan application rejected is the unavailability of necessary documents with the applicant. Before applying for a loan, check the documents required to submit with your application form. Failure to submit the essential papers might cause housing loan approval to be postponed or rejected. As a result, it is critical to correctly fill out the application form and upload all required documents.
- Opt For a Longer Tenure
If a larger EMI puts a strain on your monthly budget, go for a lower EMI option with a more extended repayment period. Because the EMI is determined by the interest rate charged on the house loan and the loan repayment duration, choosing a low EMI but extended time schedule can help get the loan sanctioned.
Using a smartphone to apply for an urgent personal loan is convenient and saves the applicant the trouble of visiting banks and physically submitting the documentation. However, if you are unsure about your loan eligibility, the methods outlined above might assist you in having your home loan application approved successfully.