For young couples the purchase of a new home is quite common. One can either opt to rent a new apartment or one can take a leap and opt for purchase of a house. If you are planning to buy a new home it is inevitable that you have to procure a loan for it due to the sky high prices of property in today’s age. Home loan provider India however look into various criteria before sanctioning a home loan as they do not want to go in to debt due to incapability of the borrower to repayment the amount especially young couples. One should thereby carefully look into the eligibility criteria before going to the lender. There are various joint home loans that are available for couples.
Financial Stability and Income is one of the major parameters for home loan eligibility on the basis of which the loan agrees to disburse the applied loan amount. A financially stable individual with high steady income is unquestionably preferred over a person with no job security.
Higher is your income more is the loan amount that can be disbursed to you by the bank. Also if such an individual agrees to pay higher EMI then the amount to be paid as interest also reduces. Thus young couples should first look into their income before jumping into any decision.
The age of the borrower has big role to play too. A person applying for a home loan must be of a minimum age of 24. Individuals belonging to the age group of 30-50 are most suitable for getting a home loan as it assures the lender that the loan is paid before the age of retirement. Thus is the borrowers are too young one is always at a risk of denial sanctioning of loan. The couple applying for the loan must have a clean credit history that is, he/she does not have any default on any of the previous loans that were taken by them then their eligibility for getting a home loan is much higher in the eyes of the bank. Any negative remark on their credit sheet reduces their chances of loan procurement.
Assets like cars, jewellery, saving accounts are seen by the bank as items whose possession assures them that they could regain the lent amount in case the borrower fails to repay the loan amount. Possession of these collaterals thus increases the chances of the individual to get his/her loan sanctioned. In case of failure to repay the loan amount the borrower can sell off the collateral themselves and make the payment to the bank or the bank itself can take possession of the collaterals to regain the lent amount. If the couple applying for the loan is currently making repayments of some other loans that they have procured it reduces their chances of getting a new loan even if they have a clean credit history. Thus young couple should keep in mind any outstanding loan dues (if any) before procuring a home loan.
Young couples can easily rush into a decision but they should make sure that they compare any necessary information like housing loan interest rates, EMI amount, pre-payment charges, stamp duty and others before making a decision. A proper market evaluation is thus necessary.