Tips to Increase Your Home Loan Eligibility

Home loans are the most easily accessible financial supplement to own your dream home. However, individuals who aspire to avail home loan are encountering the stiff situation of late. Home loan eligibility is directly linked to rate of interest (ROI). It is inversely proportional to ROI. Higher interest rate implies the tougher eligibility for home loan. For the past few years home loan interest rates are increasing but this year it is falling down. But still the there are ways out to increase you eligibility criteria for higher loan amount.
Loan Tenure
Choosing the longer tenure is one of the most important considerations and primitive way to increase the home loan eligibility. It is due to reduction in EMI with higher term of repayment period.
Outstanding Loans
Eligibility for housing loan gets adversely affected if the applicant is having outstanding loans like car loan or personal loan. As per the standards, if a borrower has 12 unpaid installments then it is going to affect the loan eligibility. In order to increase your eligibility, you should pre pay the installments fully or partly.
Clubbing Incomes  
Adding your earning family member such as spouse or mother or father or son or daughter as co-borrower will make you eligible higher loan amount. Trying to get a clear picture, take an illustration. An individual is earning Rupees 2, 000, 000 and is expecting the loan of amount Rupees 4, 000, 000. Additionally if his wife is also the same amount then adding her income he can qualify for the required loan amount.

Step Up Loans
It is another way to increase the home loan eligibility. A step up loan allows you to pay lower EMI in initial years of the loan and then higher EMIs for rest of the tenure. Housing Finance Companies (HFC) usually consider the low EMI while calculating the home loan eligibility.
Perks
Salaried individuals must take into account the variable factors of his income such as performance linked pay and other incentives while applying for the housing loan. Adding the variables of income will increase the loan eligibility.
From the above points it is clear that there are many points to increase the home loan eligibility. However the applicant should be cautious and thoughtful of his financial planning while increasing the home loan amount eligibility. For example if someone decides to pre pay his outstanding loan in order to enhance the eligibility then he or she may become fund strapped. Hence it is advisable that you check your financial strength before taking any step further.