Due to low credit rating, income restriction or high debt to income ratio, or any other failure to meet loan eligibility criteria, if one is denied the amount necessary, taking out a joint loan could help.
Digital advancements have made various financial transactions seamless – all one needs is a computer or smartphone and an internet connection. This also applies to any loan application, including a home loan. The traditional offline route, in comparison, is time consuming and also becomes inconvenient as one has to travel with one’s documents to the offices of the loan provider.
Most home loan providers have now made it easy to apply for a home loan through their website. An applicant can register on the lender’s website, complete the application and submit it along with their documents in electronic form. The borrower will also be able to make the payment of the loan application online. When applying for a home loan, one can visit the website of the home loan provider and use the home loan eligibility calculator to find out the loan amount one is eligible for.
For first-time home buyers, there are usually various deals and offers that one can take advantage of. Additionally, due to a low credit score, income restriction or high debt to income ratio, or any other failure to meet loan eligibility criteria, if one sees oneself refuse the amount he/she needs to borrow, experts say, taking out a joint loan could help. Whether with a family member or close relative, taking out a joint loan increases eligibility for that loan.
Note that the loan approval process might also be easier, for a joint home loan with a co-applicant who has a better credit profile. This can increase the chances of the borrower’s loan being approved, while still being eligible for a higher amount.
By comparing loans from different lenders, you will not only be able to get the best interest rate, but also keep the overall interest cost low until the end of the mortgage term.
The do’s and don’ts of applying for a home loan online;
- The borrower must check his eligibility for the loan before starting his mortgage application
- Keep the documents ready before starting the online application process. Go through the list of required documents in advance.
- Research the type of home loans available. The borrower should be clear about the type of loan they need – home loan, home improvement loan, house extension loan, land loan, etc.
- A must for new borrowers – read the Frequently Asked Questions (FAQ) before starting the loan application process.
- For any other questions, one can use the online chat function to get direct help.
- All the details that the loan provider needs to process the application must be provided truthfully.
Not to do
- One should not apply for a random or unrealistic loan amount without checking eligibility.
- One should try to complete the loan application process all at once and not in stages. Take the time and sit down for the application.
- All their documents must be ready – do not forget to submit important documents.
- A borrower’s CIBIL score has an impact on their loan application. Therefore, one should not ignore the CIBIL score when applying for a loan.
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