Home loan eligibility is dependent on a variety of factors. If you are going to apply for home loan in NCR then you must know them. I shall be discussing about some of these. The lender considers all these factors besides your credit history to conclude what loan amount you are eligible for.
- Income – Your income establishes the total sum of home loan you will be eligible for. The EMI to income ratio is usually maintained by banks at 0.45 to 0.50.
- Existing loans- If you have any existing loans, then the eligible loan amount will be lesser to maintain the EMI to income ratio at 0.50.
- Tenure of the loan – The longer term you select, the better will be your eligibility.
- Interest rate – If interest rates are lower, then the eligibility will be better and vice versa.
Process of applying
- Submit the filled in loan application form and the necessary documents.
2. Your loan application is evaluated on the basis of several eligibility and funding standards.
3. Credit assessment of your income, property appraisal, property title check is carried out by the lending institution to decide the loan amount.
4. On the basis of interior and regulatory guidelines, lending institution might consent or decline the application.
5. If accepted, after loan approval, you will need to submit prearranged original property documents alongside agreements signing, and submission of post-dated cheques/ECS.
6. If all the documents are in order, lending institution will pay the loan amount based on the advancement of construction to the contractor/developer. Pre- EMI interest or EMI will start from the payment day.
Documents required for home loan for flat purchased from the builder
Purchasing a property or flat from a reputed building developer makes sure that your documentation process is hassle-free and easy. Banks and financial institutes have a list of permitted developers and their customers thereby, get loans easily.
If you are planning to buy a property or flat from approved builder, the following documents should be ready with you to make the documentation process simple-
- Agreement to sell
- Schedule of payment to be made
- Lien agreement in favour of bank
- Other vital documents needed
If your builder is not included in the list of approved builders but presents a reasonable deal you can still apply successfully for a home loan by submitting the following documents-
- Identity Proof
- Salary slip/Form 16 A.
- Address Proof
- Details of monthly income and expense
- Bank statement for last 6 months
- Search and title report (with the details of documents)
- Original copy of your agreement with the builder
- Copy of building plans authorized by the fit authority
- Development agreement between the builder and the owner of land
- No Objection Certificate from corporation or fit authority.
- The most recent receipts of taxes paid.
I hope this post has alleviated al your doubts and concerns regarding successfully applying for home loan.