If you are planning to buy your dream house, you might be looking for a home loan that fulfills all your requirements. Factors such as lower interest rates, flexible repayment options, minimal formalities, and quick disbursal decide the viability of a home loan.
It is important that you study all the features of your home loan before settling for it. On the other hand, your eligibility for a home loan is based on factors such as age, qualification, credit history and other information.
Your credit score is a deciding factor for the loan providers to assess your loan application. However, the entire value of the property is not financed by the home loan provider. The maximum home loan eligibility will depend upon the value of your property.
Banks and other Non-Banking Financial Companies (NBFCs) expect you to put in a contribution towards the cost of the house. This is to ensure that even if the value of the house goes down in the future, the outstanding loan amount is lower than the market value of the property.
The initial amount that you need to pay in order to avail a home loan is commonly known as margin money or down payment. Even if your income is enough to justify a higher loan amount, financial institutions always provide home loans depending upon their down payment policies.
The loan eligibility is also affected by numerous other factors. Some of them are mentioned below:
Age of the Building:
Most loan providers have a cap on the maximum age of the building. So, if you are buying a property on resale, the probability of getting a higher loan tenure is very low. This, in turn, reduces the loan eligibility.
Power of Attorney:
In some states, property transactions are done on the basis of a power of attorney. In this case, the seller of the property gives the buyer the possession of the property as well as the power to deal with the property. This power of attorney would also give the power to the buyer to further provide such power of attorneys to other future buyers. Most financial institutions do not encourage such transactions since the ownership of the property is suspicious in such cases.
In order to minimize the payment of stamp duty that is applicable on transfer of property, some buyers enter into amenities agreement to account for the balance purchase price. However, such transactions directly impact the loan amount financial institutions are willing to provide.
With Leading Non-Banking Financial Companies (NBFCs) like Finserv Markets, you can check your eligibility for a home loan with the help of an easy-to-use online Home Loan Eligibility Calculator. Just by providing a few basic details, you can calculate the amount of money you will receive as a home loan.
Moreover, home loans with Finserv Market have comparatively lower interest rates. You can also customize your home loan depending upon your needs and requirements. So if you are looking for a home loan to buy your dream house, Finserv Markets can certainly be the right fit for you.