Okay, so you have decided to purchase your dream abode in the southern city of Hyderabad! But, after having said that, you should also consider some elements that will help you in approval of your Housing Loan in Hyderabad.
The steps to a Home Loan in Hyderabad approval are not complex, all that you have to ensure is to think ahead to get a fast approval. Let’s help you get into the 4 moves that will lead to a Home Loan in Hyderabad approval.
Step 1: It’s time to get your credit in order
Before you go ahead and apply for a housing loan in Hyderabad, it would be better to get your hands on your credit report.
Also, have a closer look at all the accounts that you own. Have you been regular with your repayments or credit card outstanding?
It is vital to know because leading lenders hesitate to approve a Home Loan if a borrower has a poor repayment history or have maxed out their credit card limits.
If you see any errors in your CIBIL report, get it removed and get it in order. It may take some for the changes to implement and you should be patient and not apply for a loan before everything is sorted.
If your credit report is good, not only the chances of your loan approval go up, you also get to land a better deal on the Home Loan interest rate.
Step 2: Keep aside some money as down payment
Different creditors may have numerous down payment requirements. It doesn’t matter what type of Home Loan you want to get; you will need to keep aside some money for the down payment.
The higher you make a down payment, the lower you would pay as interest on the remaining loan amount. Generally, Home Loan borrowers should put down 20% so that they have to repay interest only on the remaining 80%. It also helps to reduce the Home Loan interest rate on the whole.
Step 3: Pay down debt
Home Loan financiers do not like to give money to borrowers who are overwhelmed with debt. It is because they doubt their ability to repay when they already have existing liabilities.
What to do?
Take all steps to pay down some liabilities and also pay your balance on the credit card including existing loan EMIs, if any.
Also, do not close any accounts that you repay until the closure of the Home Loan because doing it will impact your CIBIL score shortly, but may not help you in landing a low Home Loan interest rate.
Step 4: Work consistently
Want to get a loan approval at a low-interest rate? Maintain an employment history of at least 2-3 years to be Home Loan ready. Creditors usually do not consider such applicants with a fluctuating employment history. Even if you get a Home Loan approval rarely, your rate of interest will be higher to afford.
So, try to have stability on your work profile, and your loan shall approve on a better interest rate.
The Bottom Line
A Home Loan in Hyderabad is easy to avail if you keep in mind the above points. The faster you try to keep these aspects in order, the smoother will your Home Loan eligibility get approval.
Also, do not settle for a lender who is ready to sanction the loan but at a high interest-rate. Instead, try to get things in order or resolved as per the above points and then apply to avoid rejection from leading online creditors. Best of luck!