Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites.
Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. For avoidance of any doubts and to make it easier, you may consider any links to external websites as sponsored links. Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

THINGS TO CONSIDER WHEN APPROACHING BANKS FOR A HOME LOAN

Buying a home is always a momentous occasion in the life of a family. The harsh reality of the matter however is that buying a home is an expensive proposition. A flat or a house in a good residential area in any major city will cost you big bucks. So, looking to buy a home on your own, without a bank loan isn’t the most sensible thing in the world, and most often out of the realm of possibility. Applying for a bank loan can very often be a daunting task as most people don’t understand the way and processes followed by banks. So here are a few things to consider when approaching a bank for a home loan.

Sujain Thomas
Sujain Thomas

Your age: Always remember that banks will prefer a younger candidate as in their estimate, someone younger, somewhere in their late 20s or early 30s will be a more viable loan option, as they have a longer career ahead of them and can therefore afford to take a bigger loan. By comparison someone approaching their 50s would receive a smaller loan amount considering that they have about 10 years of their career to repay the same. By rule of thumb the age of 27 to 34 are considered ideal to grant home loans to.

Your relationship with the bank: A bank values return business from customers just as much as say a shopping mall or a supermarket. This simply means that you are likelier to get a loan from a bank where you have had an account for a few years, or transact regularly. Always approach your home bank branch and have a frank discussion with your bank branch manager about your qualification for a home loan. That being said however, you should also approach a couple of other banks to be able to have a clearer picture of the kind of activity that is going on in the home loan market.

Understanding eligibility: Remember that your eligibility for a home loan depends directly on how a bank perceives you as a customer. This means that the bank will take into account your age, your employment status, your annual income and credit history into account, before making a decision to invest in your home. Always keep your documents in order, as a salaried individual your salary statements need to be in place. As a self employed professional, your Income Tax Returns for the past 3 years need to be in place along with a Profit and Loss statement and a balance sheet verified by a CA for the same duration.

Your credit history: This term simply means your history of repayment of loans and outstanding arrears. Now this is a tricky business. On the one hand a negative credit score can seriously hamper your chances of securing a home loan, the lack of a credit score (in case you’ve never had a bank loan or credit card) can also be detrimental to your cause. Therefore, in such a case you need to have had a great relationship with a bank or approach a government or PSU bank for a home loan.

Now that you have a fair understanding of how a bank decides to give out a home loan, you’re better equipped in order to prepare yourself to approach a bank with the right documentation and confidence.

Author Bio –

Sujain Thomas has written many good, informative articles on different categories like entertainment, home decor, real estate etc. Through this article, she gaves some information on an ideal location for your dream home with all the facilities and entertainment options within reach.