When you’re ready to buy a home, the last thing you want is for your mortgage loan to be delayed. So, to get your online Home Loan approved quickly, follow these steps:
- Know what you can afford
Knowing what fits in your budget is the most important step in securing a Home Loan. Lenders typically pre-approve you for a loan based on your income and debts, but it’s important to have a clear picture of your budget before you start shopping for a home.
To get an idea of what you can afford, start by looking at your current expenses and debts. First, list all your monthly bills, including credit cards, car payments, student loans, and other regular expenses. Then, add your total monthly debt payments and subtract that from your monthly income.
The resulting number is called your “debt-to-income ratio.” Lenders prefer a debt-to-income ratio of 36% or less, meaning that no more than 36% of your income should go towards monthly debt payments.
- Pay a higher down payment
A higher down payment shows creditors that you’re more financially stable and less likely to default on your loan. It also lowers your monthly payments and helps you build equity in your home more quickly.
If you have the financial resources, try to pay at least 20% of the purchase price as a down payment. This will not only help you get approved for an online Home Loan more quickly, but it will also save you money in the long run.
- Work on building your credit score
Lenders will check your credit score to decide whether or not you’re a good candidate for a loan. If your credit score is low, it may take longer for your loan to be approved. You can improve your credit score with the help of a Housing Loan EMI calculator.
Here are three things to consider while trying to build your credit score:
- Make sure you keep up with all your payments. This includes both bills and debts.
- Try to pay down any outstanding debt you have. The more debt you have, the lower your credit score will be.
- Before applying for a Home Loan, avoid opening any new lines of credit. Too many lines of credit can also lower your credit score.
- Be aware of your loan eligibility before applying
The approval of a loan application is subject to certain criteria or factors. It is therefore highly recommended that you check your credit report beforehand to avoid any possible mistakes or discrepancies. A Housing Loan EMI calculator can be used for a smooth home buying experience if the error is a result of a credit check.
- Utilise the co-applicant feature
If you’re hoping to get your Home Loan approved quickly, one of the best things you can do is utilise the co-applicant feature. This means finding someone willing to co-sign the loan with you.
This can be helpful because it shows the lender that you’re not going into this alone. You have someone willing to help you make payments if needed, which makes them feel more confident about approving your loan.
To find a co-applicant, ask family and friends if they would be willing to help you out. Even if your income alone does not qualify you for a loan, this will tell the lender you can repay the loan on time.
- Carefully review the application form and all supporting documentation
When you’re ready to buy a home, the last thing you want to do is slow down the process by making avoidable mistakes. So, one way to avoid delays in your loan approval is to complete your application and include all required documentation.
Lenders need certain information to process your loan, so be sure to complete every section of the application and sign it. Include documents that support the information you provided on your application. You’ll need additional documentation, such as tax returns if you’re self-employed.
Ask your lender if you have any questions about what documentation is needed before submitting your application. This will ensure that your loan is approved quickly and without delays.
- Go for a pre-approved Home Loan
Banks and other financial institutions offer this type of loan based on your income and creditworthiness. It gives you an estimate of how much you can borrow and also offers certain discounts and benefits.
To get a pre-approved Home Loan, you will need to submit your documents such as income proof, KYC documents, etc. Then, the bank or financial institution will assess your eligibility and offer you a loan. Pre-approved Loans are generally for a shorter tenure and have lower interest rates.
Conclusion
You can get your online Home Loan approved faster in several ways. By following these tips, you can make the process much smoother and quicker. Keep in mind that the lender is looking for a few key things, and as long as you can show them that you are a good candidate, you should have no problem getting your loan approved in quick time.
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