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To apply for a home loan is not a Herculean task as it is made out to be.
As the individual are eager to get their loan approved so are the banks  looking disburse the home loans to increase their  own cash Flow.  Most of the banks whether national or multinational are now disbursing the loan to home seekers in India. But before disbursing the loan the banks want to minimize their risk of default of their loan which in any business is a normal practice to mitigate its risk. So there are certain checks and balances that banks normally do . A bank or financial institution has their own criterions and norms to decide the eligibility and amount of home loan. A housing loan receiver would not face any complications by being alert of these factors.
Verification
The home loan application form offers details about the borrower. The details that are offered by the applicant in the application form are cross-checked by various primary and secondary sources i.e., through interview, calling up the employer, verifying from the bank’s database etc. Do make sure that the informations are not fudged as it will hamper the chances of loan approval.
Repayment ability
 The loan eligibility is based on the  repayment ability  on the financial status of the applicant. The income level, net income, liabilities etc are the factors that ascertain the quantum of home loan a borrower is eligible for. The prerequisites comprise of a particular minimum income or a fixed source of income. The credit history of the applicant also plays a vital role. Normally, the financial institutions keep a complete record of the borrower and check the credit history to ensure prior repayment defaults, even from other financial institutions.
Personal Information
 These factors comprise of educational qualifications, profession, number of dependents, assets owned, liabilities owed, savings history etc. Higher the education of an applicant increases the points of an applicant. If an applicant has a higher number of dependants or existing liabilities that means lower repayment ability in the terminology of the banks..
Age
Age plays an important role in deciding the earnings capability of a home loan applicant. If a property is co-owned then the co-owner cannot be a minor. Also, the co-owner of a property cannot be above a specific age limit. The age restrains are fixed to reduce ownership rows. The age limit also have an effect on the duration of the home loan and EMIs.
The applicant’s retirement age is also taken into consideration. Generally the loans are given for a tenure of 20 years so once the applicants cross the age of 40 the tenure of loan terms is also reduced because in India the retirement age is taken as 60 years by most banks.
Property Location
Location of the property also has influence on the eligibility of home loan. There are few regions that are specified as being “negative” in the books of some financial institutions. Where the banks will not give loans. Lenders have fixed laws with respect to a minimum area of the house. This area may be built-up area or carpet area of the house. In case, the applicant is buying existing properties, then banks will also take into account the age of the property. Financial institutions sanction home loans on resale properties only if their property age is less than 50 years old.
Financial institutions carry out legal and technical appraisals of the property to check whether the property title is clear or not, there are no ownership disputes, the property is free from any encumbrances etc These titles should be clear to be eligible for the bank loan.
The above points are not at all difficult to meet provided one chooses a right property and has got right papers to support his loan applications. Thousands in India are taking loan and thousands will continue to do so in future also.
All the best for your home loan approval!
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