For many, a home loan is the only way of buying a house. Today, the real estate market is very expensive, which means that solely relying on savings and income is not enough. There are numerous lenders out there offering home loans that provide the financial assistance a borrower needs to buy a house. However, before applying for this loan, it is important to keep in mind the eligibility criteria of lenders when it comes to housing loans.
Now, lenders consider numerous factors as part of their eligibility criteria such as an applicant’s current age, salary, location, credit record, employment record, and so on. One easy way to check your eligibility is to make use of a home loan eligibility calculator. This calculator is an online tool that helps in computing the loan amount that you are eligible for. This helps in reducing the chances of the loan application getting rejected.
Why is a home loan eligibility calculator important?
Many borrowers have their applications for housing loans rejected simply because of the fact that they were not aware of the lender’s eligibility criteria. You might not know this, but too many loan application rejections count as a negative mark for the next lender evaluating your loan application.
A home loan eligibility calculator can effectively help in avoiding this problem. After using this calculator, you will know the loan amount that the lender can offer. If the loan amount displayed is acceptable, go ahead and apply for the loan. However, if it is not, you can keep searching for other loan plans and avoid sending an application that might get rejected.
How to use a housing loan eligibility calculator?
Using this calculator is easy. Simply fill up the fields asking for the city of your residence and date of birth. Once this is done, fill in further information regarding the housing loan’s repayment tenure, additional sources of monthly income, net monthly income, expense obligations, as well as monthly instalments of any other existing loans.
Since a home loan is most likely going to be the biggest loan of your life, it is important to be prepared with a sound financial plan. Using this calculator will help in understanding the loan amount that you can get. With this, you can figure out whether the loan plan is a suitable option or whether you need to keep looking for other loan plans.
Many borrowers place their whole focus on the home loan EMI payments and hence try to get a lender that offers the lowest home loan interest rate. While this is a valid factor, it is equally essential to first be sure about the eligibility criteria. While using the EMI calculator does help in finding out whether the monthly instalments are going to be affordable or not, do note that using the eligibility calculator first makes much more sense as it will give an idea of the loan amount you are eligible for.