Increase Your Chances of Getting Home Loans in Hyderabad

Increase Your Chances of Getting Home Loans in Hyderabad

Getting approved for home loans in Hyderabad is one of the most challenging tasks ever. Even when the interest rates have been considerably lowered by the banks and other financial institutions in the last few years, getting approval for home loans is still a mammoth task, with a considerable number of the applicants having their applications rejected. However, there are some simple ways one can ensure that it does not happen to them.

The following are some easy ways one can improve their eligibility in the eyes of lenders and increase their chances of home loan approval in Hyderabad.

By adding a co-applicant One can easily enhance the possibility of getting speedy approval from the lender by adding a co-applicant with their loan application. The co-applicant naturally must be close to the individual and have a good credit score. Additionally, doing so will also increase the maximum loan amount that one can borrow.

Credit score above 750 Maintaining a good credit score (ideally above the 750 mark) will significantly boost one's chances of getting approved for home loans in Hyderabad. A high credit score indicates the ability of the loanee to repay the lender with added interest. A high credit score also lowers the interest rate for loans as well.

Repay the existing debts In case the applicant has an existing loan and debt, the lender would look at their repayment status, which indicates whether the applicant is capable of clearing their dues or not. By regularly paying their dues, one can significantly increase their chances of getting the home loan approval. It will also help if the applicant has some savings and investments in the mix as they also increase the chances of approval.

Open an account with the lending institution.

Banks often prefer their existing customers over any new applicant for a home loan. Naturally, it will significantly help an applicant if they first open an account with their preferred lender before asking for a loan. Now, it might take a year for an account holder to build a good relationship with the bank and then leverage it for a better deal for a home loan. So, yes, while it might be a lengthier strategy, it does significantly improve one’s chances of getting a home loan approved.

Declare additional income sources Another excellent way to improve their chances of loan approval is by showing more than one income source in their application. This enhances one’s eligibility for the loan process considerably as it indicates their ability to repay a higher loaned amount. The other income source could be anything, from consultation to freelance work; it only needs to be completely separate from one’s primary income source.

Opting for a longer tenure Lastly, applicants can also improve their chances of getting approval for a home loan if they opt for a longer loan tenure. There are two primary reasons why it helps the applicant. ● First, it reduces the risk for the loanee to skip on their payment as their EMI amount would also go down the longer the loan tenure is. ● Second, the lender would be able to earn significantly more as interest over the loan period.

Banks and other financial institutions might hesitate to give out a five-year tenure home loan, but they would be likely to approve a 15 or 20-year loan agreement.