Do I qualify for a home loan? That is one of the questions that may come to your mind when considering moving into a new home.
You don’t have to withdraw your savings to buy or build a home because you may need that money in the near future. Getting a home loan is the surest way to own property in any location you prefer.
Home loans are available at affordable interest rates and flexible repayments period. You’ll not struggle to repay your loan, even when your income is small. Just negotiate for small EMIs and longer repayment periods with your lender. That way, you will pay your home loan comfortably and without fear of default.
But before you apply for a housing loan, decide how much money you need. You can then use a housing loan eligibility calculator to determine the amount you can qualify for, depending on the lender’s interest rates and income.
Ensure you give the necessary information for the calculator and suggest the right amount you should apply for.
Remember, home loan application rejection affects your credit score negatively. That’s why you need an eligibility calculator. Below is the essential information you need to use the calculator.
Basic Data Required when Using Housing Loan Eligibility Calculator
Monthly Income
How much you earn every month determines your loan eligibility. Your income should not be less than INR 15000 to qualify for a home loan at institutions like PNB Housing.
So, when using the eligibility calculator, your income is one item you should input into the tool to find how much you qualify.
You will also know the equated monthly installment to pay using the calculator.
Loan Repayment Tenure
When you get a home purchase loan, you repay the interest rate’s principal amount. The equated monthly installment you pay determines how long it will take to repay the home loan.
Check your income and the interest rates, then determine the loan repayment period using a home loan calculator.
Ensure you choose the appropriate repayment period to reduce the cost of your loan. Loans with maximum tenures are expensive.
Can you afford to pay bigger EMIs? If yes, consider a loan with a shorter repayment period, and you will pay less interest.
Lender’s Interest Rates
Home loan interest rates vary from time to time. Different lenders also change varied interest rates. Your credit score can influence the interest rates you pay for a home purchase loan.
Though you can access a PNB housing loan when your CIBIL score is 611, you get better deals with a score above 700.
When using a housing loan eligibility calculator, you are required to input the loan’s interest rate. The calculator helps you determine how much to borrow based on your income and interest rates.
Remember, getting a low-interest rate saves you the cost of borrowing. Higher interest rates make loans expensive.
Existing EMIs
Do you have other loans you’re servicing? If yes, you are supposed to provide their equated monthly installments.
Remember, if other loan obligations are higher, your chances of qualifying for a housing loan reduces.
Many loan obligations indicate higher lending risks. Consider clearing other loans before applying for a new one to increase your eligibility.
Benefits of a Housing Loan Eligibility Calculator
- Using the calculator, you will get accurate results on the amount you qualify for.
- The calculator saves you time and effort since you can use it anywhere, increasing convenience.
- You won’t risk leaving out any parameter needed to calculate home loan eligibility since the calculator captures all the data required.
- You don’t have to visit the lender’s physical office to know how much you can borrow. Feed the calculator with your income, interest rate, loan repayment period, and existing EMIs, and get the amount you are eligible to get.
Conclusion
Use a loan eligibility calculator and check the amount to apply for before submitting your application. That helps to eliminate the chances of loan rejection. Once you feed the calculator with your income, loan tenure, interest rates, and other loan obligations, you get results instantly.
Also Read: What Do Real Estate Agents Do? 5 Things You Should Know
