You can know if you are eligible for a home loan by using an online calculator. This article details the process to follow.
Buying a house is one of the most challenging tasks today, and not just on account of Indian realty being expensive. It takes a fair bit of planning to buy a house after applying for a home loan.
However, your bank makes the home loan process much simpler than anticipated. Not only do leading banks have multiple home loan options to offer, but they also provide you with house loan calculators and home loan installment calculators to streamline your house hunt and the loan application process itself.
Most first-time home buyers wonder if they are eligible to get a home loan. If you have a steady source of income and a good credit history, then you are eligible for a home loan.
Calculate your home loan eligibility
- The best and simplest way to know if you are eligible for a home loan, is to use an online home loan calculator. The house loan calculator is available for use on your bank’s web portal.
- The home loan calculator computes your eligibility based on your age, credit history, income and city of residence.
- Input your details as asked, taking care to mention your income correctly – leave out heads like LTA and Medical Allowance, which are not considered.
- The house loan calculator gives you the closest approximation of the amount of loan money you can get from the bank.
Map your finances
- Once you calculate your home loan eligibility, you are in a better position to chart out your future course of action. The home loan calculator offers a direction in which you can proceed to your house hunt, you now know how much your budget for the house purchase is.
- Do note that you will get only up to 80% of the house’s price as home loan. The remainder must come from your personal reserves. You must assess your finances to ensure that you can pay the remaining 20% of the house’s cost from your own pocket, as well as other expenses like loan application charges, property and personal evaluation fees, pre-EMI, stamp duty and registration costs, stamp duty on the loan agreement, etc.
- Also use a home loan instalment calculator to find out your projected EMI outgoing per month. If the EMI exceeds 50% of your monthly income, then the borrowing is too high.
Discuss your options with your bank
Now that you have calculated your home loan eligibility and also assessed your finances, it is time to present your chosen property to the bank for discussion. Leading banks have up to 4 different home loan options to choose from. You can select the home loan that suits your requirement and profile the best.
Also get a schedule of charges that you are expected to pay before the loan is disbursed.