If you also want to apply for home loan, then follow these tips…your chances of getting the loan will increase.

Banks or Home Finance Companies (HFCs) often approve home loan applications on the basis of the applicant's income, credit score, payment capacity, etc. If these conditions are not fulfilled, the home loan application may be rejected. If you have been rejected for a home loan earlier or you feel that your chances of getting a home loan approved are low, you can increase your chances for home loan approval by adopting these methods (how to get home loan easily ).

Try to maintain a credit score of 750 or higher

your credit score home loan¹ Plays a very important role in the process. Through this, banks assess how much risk there is in giving you a loan. Generally, applicants who pay their loan EMIs and credit card bills on time and otherwise follow financial discipline have a good credit score. Banks also do not hesitate in giving loans to such applicants i.e. those whose credit score is 750 or more. Applicants with higher credit scores also have increased chances of getting a loan at a lower interest rate. At the same time, applicants with low credit scores have less chances of getting loan approval and even if they get the loan, its interest rates are higher.

Banks also give pre-approved offers on home loans only to their existing customers who have high credit scores. So before applying for a home loan, be sure to check your credit score and if the score is low, take necessary steps to improve it – like, pay your credit card bills and EMIs on time, avail multiple loans or credits in a short period of time Avoid applying for cards etc.

Along with this, make a habit of checking your credit report regularly. This will also let you know whether there is any wrong information in your report. If so, you can contact the Information Bureau or your bank to correct it. An improved credit report can improve your credit score.

Consider taking a joint home loan

The factors that banks/HFCs consider while evaluating your home loan application include your credit score, income, ability to pay, employer profile, business profile etc. Insufficient income, low credit score, high EMI/NMI ratio are some of the main reasons due to which your home loan application may get rejected. If your home loan application is also rejected for the same reasons, then you can apply for a joint home loan with a working member of your family who has a stable income and a high credit score.

By doing this, your chances of getting a loan not only increase but the chances of getting more loan amount also increases. It will be even more beneficial for you to make a woman like your wife a co-applicant. Because many banks and HFCs offer home loans at lower interest rates to their female applicants or co-applicants. However, before applying for a joint home loan, remember that any delay or omission in the monthly payment can negatively impact the credit scores of both the primary applicant and the co-applicant (how to get home loan easily) .

EMI To NMI keep in mind the ratio

Before accepting the home loan application, banks/HFCs also ensure whether you can repay the loan on time or not. For this, they evaluate your loan repayment capacity. Banks prefer to give loans only to those who spend 50%-55% of their monthly income on EMI payments (including the current EMI and the EMI of the loan to be taken). Therefore, if you are already paying a loan, then foreclose that loan as soon as possible and if this is not possible, then extend the loan tenure of the home loan you want to take. By doing this the EMI amount of your home loan will reduce and the loan repayment capacity will also increase (how to get home loan easily). To improve your chances of getting the loan approved, you can choose a longer repayment tenure but doing so increases the interest cost of the loan.