Why it is important to use a Home Loan Eligibility Calculator before applying?

Why it is important to use a Home Loan Eligibility Calculator before applying?

In our country, many people who don’t have their homes and to achieve this dream of them, lenders give them the home loan facility. But a lot of people are confused about this home loan eligibility factor. If you don’t know what this is, then let’s break it up in two parts - home loan and eligibility. A home loan is a facility through which you get the loan amount to land purchase or any other purposes related to your home. Eligibility is the condition which requires to obtain something.

So, home loan eligibility is that factor which will decide what home loan amount you will get and what are those conditions that you have to fulfill. There is this simple method to check the exact eligible home loan amount for yourself. This method is to use the h ​ ome loan eligibility calculator​. With this amazing tool, you can know the loan amount you can get. So, in this article, we will be telling you about this tool, how to use it, and what are those other factors that affect your home loan eligibility. So keep reading!

How to use the Home Loan Eligibility Calculator?

Like any other calculator, this also needs a few details to use this amazing piece of tool. The main goal of this calculator is to know the exact amount that you can get for your home loan. These details are your Date of Birth, residing city, current monthly salary, required tenure, and current EMIs or any other obligations. As soon as you will feed all these details into the calculator and hit the feed button, you will get the exact loan amount that you’re eligible at that period.

What are the factors that impact your eligibility?

As we told you some factors that define your ​home loan eligibility​. You can have a look at those factors mentioned below.

Monthly Income:​ This is the first factor that will determine your home loan amount. You will be paying your home loan EMIs from your monthly income only. And since it will be getting a sufficient portion of your income, it’s important to keep the loan amount according to that only. If you have a good enough monthly income, you will have the chance of getting a high loan amount. But there’s a catch in this!

Existing Obligations:​ Despite a high monthly income, if you have some running obligations such as credit card EMIs or any other loans, then your loan amount can be a bit low. As you are already having liabilities, so to balance that, you will be getting a lower loan amount so that you will be able to pay the EMIs on time.

Property Location and Value: ​This also plays an important role in defining your home loan eligibility. If the property against which you’re taking a h ​ ome loan​ is in a good location and has a high value, then you will be automatically getting a higher loan amount.

CIBIL Score:​ With a good credit score, the lender will be able to trust you more as you have a good repayment track. Lenders can give you a slightly higher loan amount based on your eligibility. So your CIBIL score also impacts your home loan eligibility.