10 Factors That Speed Up Home Loan Process Approval

 

In this new generation, the world is evolving at a larger scale, and so the needs and demands are also increasing day by day. Now a lot of factors decide the hierarchy of the ideal lifestyle. One such factor is having your home in a developing vicinity, which will help you in settling down conveniently.

If you have a high residential demand in these localities, it might be difficult to go for a 100% payment scheme. You need to opt for a home loan. Though it may be an arduous task, if you know the proper procedure and have all the necessary documents, it is pretty easy. 

We are here to guide you to speed up your home loan process. 

Have a look at the top 10 factors which you need to consider before applying for a home loan so that the loan approval process can be speed up

1. Maintain your credit score

Firstly, banks want to ensure whether you are responsible when it comes to your finance or not. You ought to possess some successful credit history and this will lead to your bank approving your home loan at a faster pace.

The ideal credit score for faster loan disbursement is about 700-800. If you have a good credit report, it means that you have no payment default and you are on time with the repayment of your EMI. This credit bureau report shows good financial stability, and this will speed up your loan process.

2. Work Tenure

Even when you apply for a home loan in a reputed bank, then years of work experience also held a great value. You might be expecting maximum profit on the rate of interest from the household property you are purchasing in the long run.

This accountability is also measured by the bank before approving your loan, based on your work experience. Suppose you have ten years of working experience, then your chance of approval for the loan is a bit higher compared to your 5 years of work experience.

This issue can also be overridden if you have a successful business or if you have the assets to prove the confidence in your repayment.

3. Maintain the debt-to-income ratio

Try to maintain your debt-to-income ratio low if you wish to have a house loan. Since the housing loan is a high demand loan, it demands a huge sum of funds in monthly installments.

To get approval on your home loan, your loan provider checks your debt-to-income ratio, and you cannot get a housing loan approval from your loan provider with the existing loans. So, try to make sure that your debt-to-income ratio is below 30% to get speedy loan approval.

4. Repayment time

If you have the finance to back it up, then it is better to take a loan with the least repayment schedule. Banks always prefer to have a reduced repayment tenure while approving the loan, and there is less risk associated with it.

5. Joint home loans

If your spouse is also working and has a stable source of income, then it might help you in buying a house. The bank always considers such cases as priority basics because of the more source of income.

In this, there is more capacity to repay the loan on time. If you have a double income in your house, then it makes your application for a home loan a solid application.

6. Existing bank customers

Every bank always values their old customers and provides a great deal, and always looks out for them. So, try to maintain a good as well as a strong and long relationship with whichever bank you trust the most.

7. Level of occupation

As your occupation justifies your loan repayment eligibility. Banks always have a hierarchy, and they follow that. People engaged in government jobs have the most stable jobs, and as a result, their bank loans get approved at a good pace.

The higher position you hold in your company higher the chance of approval of your loan.

8. Applicants age

Banks always trust that group of people in the financially growing age group of 28 to 50. If you have a good stable income or adequate assets, getting a loan is easy at any age.

9. Distance holds importance

Banks always prefer to provide loans to those customers who are living close to their branches. This is the reason why location is an important factor in choosing the right residential property.

10. Focus on documents

There are various instances where the home applicants have been careless with their official documents. So, make sure you check and recheck the documents before proceeding with your loan.