Get your home loan approved quickly in the first attempt with 10 smart home loan tips from Credit Mantri. Get sanctioned for the best home loan offers at the best interest rates.
You’ve been searching for months, looking at property website after website, going on numerous site visits and finally, you have found the dream home for you and your family! Congrats! You've got just one more hurdle to cross before you settle in your dream home – getting the home loan approved.
With property prices soaring to tens of lakhs rupees or even crores, purchasing a home today is next to impossible without the help of a home loan. Thankfully, home loans are readily available. But not all home loan applications are successful. Even a simple mistake can cause your home loan application to be turned down.
A Home Loan Rejection Can Hurt You in the Long Run
Getting your home loan application rejected can be devastating emotionally. After all, you’ve spent months fantasizing about your dream home and seeing that dream crushed at the last minute can be huge.
Besides emotional upheaval, a home loan rejection can also lead to other troubles. For example, when a home loan application is rejected, it acts as a red flag for other lenders, making it difficult to get approved for a home loan from another lender in the short term. Hence, you need to make sure that you get your home loan approved on the first attempt.
Worry not! Credit Mantri is here to help! We've compiled the best home loan tips to get your loan application approved fast. With proper planning, you can get your home loan approved within a few days and make your home dreams come true.
Best Tips to Qualify for a Home Loan QuicklyTip #1: Work on Building your Credit Score before you Apply
A good credit score and credit history works in your favor while applying for a home loan. Having a credit score of 750+ improves your eligibility. It helps you secure multiple home loan offers from the top lenders at the best interest rates. However, note that it's not possible to build your score overnight. Depending on your current score levels, it takes anywhere from 3 to 24 months to boost your credit score.
So, if you plan to take a home loan in the next year, make sure to start working on your credit score right now. Here are a few tips to improve your credit rating:
Start by checking your credit score for free. This gives you a clear picture of where you stand and what needs to be done.
Never default on your credit card bills and EMIs. Repay them on time and in full.
Don't max out your credit card. Try to keep the utilization ratio below 30%.
Don't have too many ongoing loans. Try to close a couple of loans before you apply for a big home loan.
Tip #2: Get your Credit Report Sorted and Free of ErrorsBesides checking your credit score, you also have to scrutinize your credit health report. Your credit report is generated by credit bureaus, and there might be errors due to misreporting by lenders. So, make sure to get the latest copy of your credit report and scan it carefully to check if it's missing any information.
If you notice errors on your credit report, then report it to the corresponding credit bureau and get it rectified. Besides evaluating your credit score, home loan lenders also check your credit report before sanctioning your home loan application. Hence, it’s essential to keep it free from errors.
To know more about the 10 Smart Tips To Get Home Loan Approved Quickly
In any home loan application, the lending bank checks the applicant’s credit score to determine his/her creditworthiness. The bank reaches out to credit bureaus to know the applicant’s credit score. While there is no minimum credit score for home loans in India, a score of 750 or above is considered ideal for easy home loan approvals.
Here, we will discuss the ideal credit score for home loans in 2021 and how borrowers can work towards attaining an ideal credit score.
What is a Credit Report and Credit Score?
A credit report is constructed by one of the credit bureaus like Equifax, TransUnion CIBIL™ (Credit Information Bureau of India Limited), Experian, etc. A credit score is a 3 digit number that could range between 300 and 900. The closer the credit score is to 900, the better it is considered, especially when it comes to home loans.
Banks and lenders check an applicant’s credit score to determine his/her creditworthiness during a home loan application. Borrowers who maintain a minimum credit score of 750 or above are generally considered ideal for loan approvals. Borrowers should avoid making multiple loan applications simultaneously. This is because every application may affect one’s credit score negatively.
A credit report contains all the important information on a borrower which can be used by financial institutions to analyze and offer home loans. Borrowers can check their credit score for free on Credit Mantri as it can help in keeping a tab on their score before applying for a home loan.
Does Credit Score Affect Home Loan Eligibility?
A credit score affects a borrower’s home loan eligibility since banks and lenders use the credit score to determine whether to approve their home loan application or not. If an applicant’s credit score is above 750, there is a high chance of getting a home loan application approved. However, if it is low, for instance, 450, then the chances of home loan approval could be very low. Even if the home loan is approved with a poor credit score, you are more likely to be charged high interest rates.
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