If we ask an average Indian about their dreams checklist, home will feature right there on top. Getting a home is a costly affair and that is why there are loans to support the dreams. However, applying for a home loan can be a tedious process. The application submission and verification related procedures could stretch for months!
In this blog we bring to you few time tested ways to reduce the time to approval for home loan:
Healthy Credit score: A healthy credit score is super critical for receiving approval for a home loan. Here’s how you can maintain a good credit score:
Always complete your payments on time, whether credit card or utility bills.
Pay off your prior debts as quickly as possible.
Ensure that your credit utilisation rate is low. Credit utilisation refers to the amount of credit you use compared to the overall amount.
Monitor your credit reports periodically and report any anomalies to the credit card companies.
Take your time to make a smart choice wrt lender: Do your research before choosing the lender. Some lenders offer a home loan with a much shorter approval time and a lower interest rate than others. The fastest way to get your home loan application accepted by a lender is to get ‘pre-approved’. Pre-approval refers to a scenario in which the lender has already assessed your credit score, income, and other factors and decided that you’re good enough to avail of a home loan.
Make a higher downpayment: Making a more substantial downpayment than usual has its merits. Not only will it make the approval of the home loan much more accessible, but it will also reduce the rate of interest to be paid. However, if you cannot increase the downpayment value, you can look at other options. For instance, applying for a home loan with the spouse could be the way to go.
Before applying for a loan, you must sort the checklist out. Maintaining a healthy credit score, doing thorough research of the home loan lender market, keeping all the relevant documents ready, and being transparent with your income, debt, and assets are the ways which help you reduce the home loan approval time.