- 1 LIC Housing Loan
- 2 Tips for enhancing LIC housing loan eligibility
- 3 Conclusion
LIC Housing Loan
LIC Housing Loan-Having the ability to get a home loan gives you the comfort of homeownership, even if you don’t have enough savings to buy the home of your dreams.
You need to be eligible for a loan before your lender extends it to you. You will be analyzed by your lender based on your income, repayment capacity, loan tenure, and credit score to determine whether you qualify for a home loan.
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Tips for enhancing LIC housing loan eligibility
Find out how you can increase your eligibility for a housing loan by following these tips:
1. Keep your credit score at 750 or higher
The chances of qualifying for a good LIC housing loan amount are high if your credit score is excellent. Your credit score is used by many financial institutions to determine your creditworthiness. housing loan require no minimum credit score. For loan approval, a score of at least 750 is considered good enough.
Keep your credit score high by making your loan repayments on time. How serious you are about repaying your debts reflects in your credit score. Consider keeping your credit utilization low. A good CIBIL score can help you secure a low home loan interest rate.
2. Find a co-applicant
There are several ways to apply for a housing loan with your family. If you have a spouse or parents, you can include them as co-applicants, which is the best option.
Co-borrowing not only boosts your home loan eligibility, but it also benefits your tax status and helps share the repayment burden. When the co-borrower’s credit score is good, it improves your EMI affordability, which increases your LIC housing loan eligibility.
3. Declaration of additional income sources
You must declare your source of income and provide proof of it when applying for a mortgage online. This is how your lender determines your loan eligibility.
When you apply for a LIC housing loan, you should mention whether you have rental income or a part-time business. A second source of income improves your financial health, which helps you obtain a larger loan amount.
In addition, additional sources of income boost the fixed obligation to income ratio (FOIR), increasing your eligibility for a mortgage.
4. Avoid changing jobs
If you have a salaried job and are considering applying for a home loan, you may be required to demonstrate that you have been working continuously for a particular organization for a certain period of time.
Therefore, frequent job changes may reduce your home loan eligibility.
You can increase your loan eligibility by working for your organization for about two years before applying for a home loan.
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5. You can extend the repayment period on your home loan
With a longer loan tenure, you pay a lower LIC Housing Loan EMI, making it more affordable for many people to qualify. A lower EMI means you can make timely payments, which makes the lender look less risky.
However, a long repayment period can benefit you by increasing your eligibility for a home loan.
When applying for a home loan online, you should choose the package with the longest tenure. However, the longer the repayment period, the more interest you pay, which increases the cost of your home loan.
6. Choose a good lender and build a good relationship
When preparing to apply for a home loan, take the time to research your options, compare their terms and benefits, and choose the right financier. Next, you can set up an account with your lender, which helps you establish a good working relationship.
A good relationship with your lender increases your chances of getting a loan.
In order to increase your chances of qualifying even for a higher amount, follow the steps above when applying for a home loan. With an excellent credit score, you are more likely to be eligible for a loan at a lower interest rate. If your income is low and you cannot afford a high EMI, choose to pay your loan over a longer period.