By ResidenceBuy India | 0 comments | 2220 views |
Feb 02 2012
Some key factors lenders check to determine your repayment capacity:
Income:
Lenders consider your current and future
projected income as an important factor in determining your creditworthiness.
If you jointly apply with your spouse or parents then the income is pooled
together for credit consideration. This is the reason why joint application
increases the chance of obtaining a home loan. Often the EMI is set around 35%
of pre-tax income (for joint application it is 30% of the combined pre-tax
income).
Past payment history: Regular
monthly payment on other loans (e.g. car loan and credit card loan) in the past
is essential for establishing a good credit history (which is a must for
getting a home loan).
Debt burden: High debt burden adversely affects your chance
of being approved for a home loan.
Value of the property: Lenders
only finance part of the loan amount (usually less than 80%).If the house is too expensive then it is
possible that lender may decide not to finance the loan (or only finance a
small portion of it). On a different note, if you are approved for a loan
amount higher than the property value, we suggest you use your judgment to
decide whether it is wise to go for a more expensive property (see
affordability section above to learn more).