A home loan can help you finance that dream home. On applying for a home loan, you would want the loan amount to be disbursed quickly and conveniently. However, as home loans involve a large amount of money, lenders may evaluate various aspects such as your source of income, employment stability, repayment capacity, etc. before sanctioning the loan amount. There are certain measures that can be taken from your end to accelerate the home loan sanction process. Some of them are mentioned below:
Tips to Get Home Loan Sanctioned Quickly
- Know your credit score
Your credit score reflects your creditworthiness and repayment capacity. A low credit score will reduce your chances of getting a home loan instantly. Whereas, if you have a high credit score and meet all the other home loan eligibility criteria like age, income, repayment history, etc., your home loan may be sanctioned instantly. Lenders usually consider score of 750 when assessing your loan application. Moreover, a high credit score can help you negotiate with the lender and get the loan at a competitive interest rate and favourable terms.
- Stick to your job
Lenders check your employment history and source of income before sanctioning the loan amount. The chances of home loan approval increase if you are employed with a reputed organization for a long duration. Before applying for a home loan, make sure that you meet the employment and income requirement set by the lender.
- Clear your outstanding debt
Try to clear as much of your outstanding debt as possible. To decide on your home loan eligibility, lenders check your Debt-To-Income (DTI) ratio. Having a high DTI would indicate that you are using a major portion of your income to pay off other loans. This would make you a high-risk borrower and prove to be a roadblock in the home loan approval. Therefore, it’s best to clear your dues before applying for a home loan.
- Get pre-approved for a home loan
Getting pre-approved for a home loan is a good way to go about buying a house. It will provide an estimate as to how much you can borrow to finance your property purchase. The pre-approval process is fairly simple. All you have to do is contact the lender and submit some financial and personal information. The lender will then share a pre-approval letter that mentions the terms and conditions based on which the final disbursal takes place. Getting pre-approved will make the home loan sanction process smooth and hassle-free.
- Keep the documents handy
Your home loan application may be rejected if you fail to submit all the necessary documents to the lender. To avoid this, make sure that you have all the documents available with you. Some of the basic documents required to avail a home loan are mentioned below:
- Address Proof: Aadhar Card/Passport/Driving License
- Identity Proof: Aadhar Card/ PAN Card
- Income Proof: Form 16 and latest salary slip
Self-employed individuals will be required to submit last 3 years of income tax returns, personal and business along with computation of income, last 3 years of profit and loss accounts and balance sheet with schedules duly certified by a chartered accountant and a degree certificate.
By keeping the above-mentioned pointers in mind, you will be able to avail a home loan quickly and conveniently. So, why wait? Take your first step towards purchasing your dream property by availing a home loan today.
