Every day, the minute you wake up, you are bombarded with calls from banks offering you home loans. But, how many of these lenders will finally approve the loan to your residential apartments in Bangalore? This is the question that you should ask yourself. With the easy availability of home loans, flexible payment options and reduced paperwork, it may look like your loan will get approved easily but there are some criteria that you need to fulfil to ensure that your loan gets approved easily. We give some tips below to ensure that you need not worry about the nitty-gritty and peacefully finish your home buying process.
- Ascertain your financial condition
Most lenders have a minimum salary requirement that varies from city to city. Being aware of your repayment capacity is important for your loan approval.
- Save up enough for a higher down payment
A higher down payment signals to the bank that you are a customer who poses a low risk. This would also mean that you need to pay back a lesser amount as you are borrowing a lesser amount. The bonus part is the interest rate would be lower as well. Hence, try to save up for at least 20% of the down payment to pay towards your pre-launch projects in Bangalore.
- Maintain your credit score
A credit score or CIBIL score is a record of your creditworthiness. This three-digit number is a reflection of your ability to repay the loan. It is a record of your borrowings and repayments. It ranges between 300 to 900 points. A credit score of 750 and above is advised.
- Keep all the required documentation in hand
- ID Proof
- Driving Licence
- PAN Card
- Voters Id
- Proof of Residence
- Utility Bills
- Birth Certificate
- Proof of Age
- Property Documents
- NOC from the builder/society
- Registered sale deed
- Land tax receipt wherever applicable
- Occupancy Certificate
- Income Documents
- Property Tax Receipts wherever needed
- Income Documents
- Salary Payslips
- Six months bank statement
- Balance sheet and profit and loss statements for self-employed individuals
- ITR for the past 3 years
- Proof of business address and registration of the certificate of the establishment for self-employed.
- Avoid switching jobs
This is just not advisable as it will affect the repayment of your residential apartments in Bangalore. If your partner is working, opt for a joint loan and stick to the job so that the tax benefits can be enjoyed.
- Have a co-applicant
Having a co-owner who earns a sizeable income increases the chances of your loan getting approved.
- Prompt responses to the lender
Additional documentation might be required and you may be contacted for the same. The sooner you respond and provide them with the required documentation, the higher are the chances of your loan getting approved. Any delays may lead to the rejection of your request towards your residential apartments in Bangalore.