Top 5 Key Criteria Banks and NBFCs Check Before Approving Your Home Loan
Availing of a home loan may appear daunting, but it is simpler if you realize what the lenders are looking for. Banks, as well as NBFCs stick to the same parameters to determine whether the candidate can be given a home loan or not. Knowing the home loan criteria beforehand not only increases your possibility of approval but also gets you ready financially to take on the liability. 1. Credit Score and Credit History The first thing lenders want to find out is your credit score. A good score, typically over 680, equals a good credit background. It is an indication that you pay your loans on time and possess excellent money management skills. The greater the score, the more assurance lenders have over your repayment strength and can lend you at cheaper interest rates. A poor grade can result in imposing higher interest on you or refusing your loan application. 2. Income and Employment Status Your income is a strong indicator of your repayment ability. Quantum as well as the frequency of...