10 Tips For Getting Your Home Loan Approved Fast

Rejection of a home loan application can be emotionally upsetting. After all, you’ve been fantasizing about your dream home for months, and having it shattered at the last minute might be devastating. Aside from the emotional turmoil, a home loan denial might also result in additional problems.

For example, when a home loan application is denied. It serves as a red signal to other lenders, making it difficult to obtain a loan from another lender soon. As a result, you must ensure that your home loan is granted on the first try. You can get your home loan sanctioned in days with good planning and fulfill your home goals.

Build your credit score before applying

When applying for a home loan, a solid credit score and credit history work in your favor. A credit score of 750 or above increases your eligibility. It assists you in obtaining several home loan offers from the best lenders at the most competitive interest rates. However, keep in mind that improving your score does not happen overnight. It can take anything from 3 to 24 months to raise your credit score, depending on your present score levels.

So, if you expect to take out a home loan in the coming year, start improving your credit score immediately.

  • Begin by looking up your credit score. This will show you exactly where you are and what has to be done.
  • Always make on-time credit card and EMI payments. Repay them promptly and completely.
  • Don’t overspend on your credit card. Maintain a usage rate of less than 30%.
  • Don’t take out too many debts. Before applying for a large home loan, try to close a few smaller loans.

Get your credit report clean and error-free

You must also examine your credit health report in addition to your credit score. Credit bureaus create your credit report, and there may be mistakes owing to lender misreporting. So make sure you get a copy of your credit report and go over it carefully to see if anything is missing.

If you find any inaccuracies on your credit report, submit them to the appropriate credit bureau and get them corrected. Before approving your house loan application, home loan lenders look at your credit report in addition to your credit score. As a result, it’s critical to keep it error-free.

Apply for a joint home loan

A joint loan has a better probability of being approved. When you apply for a home loan with your spouse or another family member who earns money. The loan is more likely to be accepted. Because there are two incomes, lenders prefer joint house loans because the possibilities of repayment are higher.

Another advantage of a shared home loan is that you can get a bigger loan because your repayment ability is better. Additionally, having a woman as a co-applicant allows you to take advantage of lower interest rates. Most lenders provide women customers with lower interest rates on home loans.

Go for a longer loan tenure

Another advantage of a shared home loan is that you can get a bigger loan because your repayment ability is better. Additionally, having a woman as a co-applicant allows you to take advantage of lower interest rates. Most lenders provide women customers with lower interest rates on home loans.

Prepare and have all documentation ready

One of the most prevalent reasons for home loan denial is a lack of required documentation. The lack of required papers might cause the processing of a home loan to be delayed or even denied. As a result, make sure to verify the lender’s website and have all of the necessary documentation ready. Most house loans require the following common documents:

  • For salaried employees: The file list is simple. it comprises ID evidence, address proof, salary stubs, and IT statements. 
  • For nonsalaried employees: You must submit documentation for both yourself and your company. ID proof, address proof, proof of business ownership, GST filings, IT returns, revenue statements, and so on are all examples.

Fix your FOIR

Aside from your credit score, lenders look at your FOIR (Fixed Obligation to Income Ratio) while analyzing your home loan application. The FOIR is the proportion of your monthly net income to your total loan payments. 

As an example, suppose you earn Rs. 1 lakh per month and pay EMIs on numerous loans totaling Rs. 50,000 each month. Your FOIR ratio is then 50. A FOIR of 50 or more is not good for your home loan application. To minimize the FOIR ratio. Try to pre-close at least a couple of existing loans. Such as a personal loan or a two-wheeler loan, before applying for a home loan.

Select a Reputable Real Estate Developer

Because real estate is risky, lenders favor borrowers who work with reputable property developers. When you hire a reputable property developer. You can be confident that the project will be completed on schedule and without legal complications. Most lenders also have ties to the main real estate developers. Choosing a lender-approved property developer increases your chances of getting your house loan authorized swiftly and painlessly.

Go for a Pre-Approved Home Loan

Being pre-qualified is one of the best ways to have your home loan application approved quickly. Home loans that have been pre-approved are dependent on your ability to repay. The amount of your house loan is determined by the lender’s current financial records. Pre-approved home loans are usually authorized within one or two days after you submit the required papers.

Make a larger down payment

Home loans do not cover the entire cost of a house. Home loans are often only available for 80 percent to 90 percent of the property value. The balance will have to be paid out of pocket. This sum is referred to as the down payment. Paying a larger down payment than is required increases the lender’s confidence, which speeds up the house loan approval process. You can check your monthly EMI using a home loan emi calculator.

Select a Bank with someone you have a positive working relationship

Select a lender who is familiar with your financial history. Such as the bank where you keep your pay account, will help you get authorized faster. Make sure to fix any current concerns, such as a disputed credit card bill, before applying for a home loan. You’ll have a better relationship with the lender this way, and they’ll be more likely to approve your application quickly.

Conclusion

Buying your ideal house is more than just a business transaction. It’s a personal commitment. It provides you with a sense of safety, stability, and pride. So, follow the wise home loan advice provided above to ensure that you take the greatest possible step forward.