After years of hard work and consistent effort, you are finally at the juncture of bringing a lifelong dream come true. Yes, you already know what we are talking about, claiming ownership over an independent house for sale in Kolkata. An asset that solely belongs to you. We are guessing that you are either running low on funds to purchase the property. Or you are in a dilemma of whether to exhaust your savings or file an application for a home loan. Although we can’t speak for what you are about to decide, we can surely inform you that home loans carry additional benefits that lure people to invest. In comparison to loans belonging to other categories, home loans prove to be advantageous of all as there is ‘zero prepayment penalty along with floating interest rates.’
One of the first reasons why most people opt for home loans is the fact that you earn a maximum amount on your own fund while paying a reduced interest on the home loan. In the end, such decisions would be governed by how much you can save on your tax and prospects related to return on investment. This brings us to the next question that must have popped in your mind by now, “I have looked up for 1BHK ready to move flats in Kolkata, but how do I perceive if I am suitable for a home loan?” Don’t worry. We are here to guide you through the various criteria determining your eligibility to the lender. If you don’t want your plea to be rejected, we advise you to follow through it carefully.
This plays a significant role in the lender’s decision to accept your loan application because they require someone financially stable enough to service the loan. Apart from the quantum of income, its quality and stability will also be judged. Home loans won’t be processed if a salaried employee has less than 2 years of experience, while the self-employed professional must have a total earning tenure of 5 years.
If you are a salaried individual falling under the age bracket of 20 to 60 years, congratulations, you have a higher stake in receiving a positive reply. Now, don’t stress if you are self-employed because, for you folks, the age group has been changed to 24 to 65 years. Nevertheless, young individuals have better chances of getting their loan approved but then again, your personal profile (educational qualifications and other related background histories) also matters.
Before we talk about this notion, let’s first understand what is credit rating, after all?
A credit rating is an estimation of a certain agency that involves your ability and commitment, as an individual, to comply with your financial responsibilities of paying back the loan amount within the due date.
So, apart from your financial performance over the years, your credit rating weighs equally when it comes to sanctioning your home loan. How does it even work? Well, a high credit score allows you to reap an increased probability of getting the loan. Not only this, but you can also be offered flexibility on loan amount, EMI tenure, and low-interest rates. We don’t know about you, but it sure does sounds like music to our ears. Talking about a negative credit score, it is reflected via your past records of default payment, fraudulent imprints, or unpaid loans. We don’t want you to traverse on this path because those 3BHK flats for sale in Kolkata that you looked through might just remain a dream. This is chiefly because a low credit score implores banks to cancel your request or charge a much higher interest rate.
If you are currently working under a vast company with an impressive reputation, thank the heavens for such fortune because you just increased your chances of receiving the home loan. Now is the time to stop complaining about your work because being a part of a significant turnover company has become an asset. With such high credibility, the lender may rely on you to pay back the dues within the stipulated duration, which means you are just a few steps away from placing the nameplate outside your house!
When considering your financial situation, banks would also analyze your past monetary stability because it holds a lot of value when your entitlement of loan has to be judged. This is one of the crucial areas in this field because if you have a good financial record, then you are free to enjoy a low-interest rate percentage, reduced loan amount, and longer tenure for your home loan application.
To better understand and overview the whole process, we have compiled a list of intricate details for a salaried employee and self-employed individuals. Let’s dive further without any further ado!
Initially, the bank would ask for proof of your current job and past transactional habits. For this, they will examine the salary slips and bank statements to get an idea of your income level. The next step is to calculate your savings, that is, 30% of your total income. For instance, if you earn Rs 50,000, the bank will assume Rs 15,000 as your savings. Any existing loans or EMIs will be considered on the income value, and finally, the banks would deduce how much loan amount can be sanctioned based on the value of the savings. So, for purchasing the 2BHK house for sale in Kolkata through a loan, ensure that you can at least pay 50% of the price from your own pocket.
We hope that you will now undertake an informed decision before jumping to any conclusion. With the points mentioned earlier, you have a crystal-clear idea about home loans and whether you have high chances of obtaining them with moderate interest rates. It might not be a plain sailing route; however, if by any chance you require further assistance, then you can surf through various business listing service portals to acquire professional guidance.