6 Essentials before opting for a home loan
When one decides to buy a house, there are a lot of things that need to be factored in other than just selecting the right property. Buying a house is probably one of the biggest financial transactions one engages in, in a lifetime. Arranging for down payments and future payments that will go towards the house is a big decision to take which requires a lot of thought and clarity before the actual transaction takes place. For example, if you are thinking of investing in residential plots in Jaipur, arranging for funds is the first thing that might cross your mind before actually purchasing the property.
Granting home loans is a well thought-out and structured process as it extends to over twenty years into the future and hence the lenders need to follow a disciplined approval process for granting a loan. From the applicant’s side, it’s essential to take care of all the formalities and necessities so there are no bottlenecks in the entire loan process.
Following are some fundamentals you should take care of, before opting for a home loan.
1. A Good Credit Score
Your track record and current creditworthiness is represented by your credit score. One of the first questions asked by any lending institution is about your credit score. It’s essential to maintain a fairly decent score in the range of 700-900.
2. An Error-free Credit Report
There is a good chance that you have a clean credit history however, you might encounter an error in the credit report which could result in home loan issues. Hence before you apply for a home loan, it is necessary to thoroughly check your credit report and get it rectified in case of any discrepancies.
3. Timely Repayment Of Loans by Others
Even though you might have a clean credit history with respect to the loans you have taken, the loans that you guaranteed for your family and friends can be defaulted which will directly affect your credit record. Do not forget to run a check on such instances and ensure that the repayment of all such loans have been done on time. This will reflect positively in your credit score, improving your prospects for your loan getting granted.
4. Complete and Proper Documentation
Make sure your home loan documentation is in place when you apply for a home loan. On the off chance that all the documents required at the time of submission are not present in your file or not in order, the home loan lender is constrained while appraising the home loan application objectively.
5. Property Parameters
Make sure you choose a property that satisfies the necessary guideline set by the relevant authorities and has all the relevant sanctions like NA certification, ownership, completion certificate and other such validating documents. . Additionally, the age of the property also plays a big role in home loan eligibility. Fairly recent properties stand a better chance of advancing your home loan than old ones.
6. Debt Clearances
The chances of your home loan getting approved increase manifold, if all the previous debts and dues have been cleared properly. A good debt clearance record amplifies your trust factor and adds to your credit value.
Now that you are aware of the essentials to be adhered to while applying for a home loan, you can be prepared before and ensure a hassle-free loan process. In case, residential plots is what you have in mind when it comes to real estate investment, Jaipur Greens is a well-planned gated community where you can invest in residential plots.