Having a place to call your own is a dream for many. A home is just not a shelter with a roof over the head with four walls. Do you need a home just to save yourself from unwarranted elements and situations? Not at all! A home is a security and a responsibility. A person with his own home is considered financially stable. A home is made up of dreams and hard work. Everyone wishes to own a safe abode for himself and his loved ones. It is always capital that comes between dream and reality to own a home. However, with a home loan, you can completely avoid this financial void. If you are tired of your nagging landlord and need a private abode, you need to start saving for the down payment. A down payment is the first eligibility criteria that a loan provider will find. You need to arrange the down payment and the rest of the fund is given by the loan provider. No matter where you apply for a home loan, there will be eligibility criteria and requisitions to be followed. A good fulfillment of eligibility criteria will not only give easy approval but also a low home loan interest rate. To understand the house renovation loan better, take a look at the factors that determine your entitlement for a home loan.

What is a home loan?

A home loan is a fund that one borrows from a bank or any non-banking financial institution to buy a home or land under construction. It is an end-specific loan that can be used for only purchasing a home and no other category. It is a secured form of loan because if one cannot pay back, his property is recovered by the bank. However, the eligibility criteria are high and you need to keep it maintained in order to ace it! It starts with a good credit score, an impressive income, property type, employment stability, joint loan, and credit background. A home loan is a one-time disbursement that is credited, and then the repayment EMI starts as decided by the borrower. This has been a very optimal solution to get hold of a huge amount of funds to have a home. However one needs to arrange a down payment so that the application is smooth and hassle-free.

How to prepare for a home loan?

Get a stellar credit score: One of the main factors that are seen by every loan provider is the credit score. If you want a home loan approval at one go, you need to have a credit score of more than 750. It is a positive credit score and speaks well about your credit record. If you have made timely payments in the past and maintained your credit accounts well, you will get a good credit score. This score will signify you as a responsible borrower and you will not only get approval but also the best home loan interest rate. To get a good score, you need to start working early.

Arrange down payment: Do not compare the down payment amount of the home with the down payment of a mobile phone or a television. The down payment amount of a home is always very high. This is an important factor for approval that you need to meet. You have to arrange the down payment because the loan provider will not do that. It is always the responsibility of the owner. So if you have plans of owning your own roof, you need to start saving for the down payment.

Income: Highlight your income source and build a good income monthly if you are looking for a home loan. A home loan is a huge amount and it keeps going on for a long-term tenure. If you take up this burden you need to keep paying EMI from your income. The loan provider will surely check your income and your expenses. If it is found out that you can manage your EMI along with your expenses well, it will be approved. An individual with an unstable income will not get a home loan approval because he will not be able to manage the burden.

Close existing loan: If you have an ongoing loan, this is not the right time to go for a huge house renovation loan burden. Close all your existing loans to get a new home loan. If the debt to income ratio is not balanced, your approval will be restricted by the loan provider. Such a situation often leads to a debt trap and no financial organization is ready to take up such high risk.

Finishing up

If you are taking a house renovation loan from Clix Capital you will get the best home loan interest rate. It will help you with an affordable loan and the total cost will always get reduced as per the market rates.

Clix Capital Services Private Limited
Corporate Address: 901b, 9th Floor, Two Horizon Centre, DLF Phase V, Gurgaon, Haryana, India – 122002
Website: https://www.clix.capital/
P: 1800 200 9898
E: [email protected]