10 factors that speed up Home Loan Approval

The world we live in is constantly evolving and so are our needs and demands. Today the hierarchy of an ideal lifestyle is determined by a lot of factors. One of those factors includes finding a home in a developing vicinity that helps you settle down conveniently. Locations like Gachibowli, Hi-tech on the west side of Hyderabad saw rapid infrastructure development. Places like Kokapet and Financial District are touted to be the next big thing! High residential demand in these localities means that for a lot of people, it might be difficult to go for a 100% payment scheme. However, if you still fancy space for yourself here, home loans are the best way to go.

Getting a home loan might seem to be an arduous task but if you know the proper procedures and have the necessary documents, it is actually pretty easy. We are here to take you through what’s what of the Home Loan approval process in India.

The advantages of a home loan especially in the world of Real Estate, are immense. It opens the gate for you to unlock great offers and the investor can be guaranteed a good return on investment. A lot of premium residential properties today have Pre-launch offers that make the process even more simple. Such offers are currently available for ASBL’s Springs and Spire projects.

Have a look at the Top 10 most common factors that determine whether a bank will quicken and consider your home loan deal or not:

1. Maintain your credit score

What banks really want to ensure is whether you are responsible when it comes to your finances. Having a good credit score history is what leads to banks approving your home loans a lot faster, an ideal credit score should be between 700 and 800. A credit report which suggests that you have no payments defaults and are on time with the repayment of your EMIs – having a bureau report with good financial stability like this will quicken the home loan approval.

2. Applicant’s age

It is a known fact that banks have a lot more trust in people who are in the financially growing age group of 28 to 50. However, if you have a good stable income or adequate assets, getting a loan is easy at any age. It all depends on how confident the bank thinks you are of repaying the loans.

If you have the age by your side though, you can opt for a larger repayment period and smaller monthly EMI. There are also pre-launch loan offers with monthly interest reimbursement plans, where the builder pays the interest on only the amount given to them in a staggered process. Therefore with so many years of employment left in hand, people in a certain age group can easily work and repay without much hassle.

3. Work Tenure

Years of work experience hold great value even when you are planning to get your home loan approved from a reputed bank. As an investor, you would be expecting maximum profit on ROI from the property you purchase, in the long run. Similarly, the bank also measures the accountability of approving a home loan to someone, based on their work experience. Someone who has 10 years of work experience is more likely to get quick home loan approval compared to someone with 5 years of work experience.

Of course, all these can be overridden if you are running a successful business or you have the assets to prove confidence in repayment.

4. Level of Occupation

Your occupation will determine your capabilities of repaying a loan. Banks usually have a hierarchy that they follow. People with government jobs are said to have the most stable jobs hence their bank loans get approved at a good pace. Next in line are doctors, followed by chartered accountants, IT employees, and lawyers. The position you hold in the company also holds great value and employees at higher levels get their loans approved much faster.

5. Distance holds importance

Banks prefer to give loans to people who are living close to one of their branches. This is one of the reasons why location is such an important factor in choosing the right residential property. With projects in central locations such as Financial District, Uppal, and Manikonda, this is not a factor that ASBL customers need to worry about at all.

6. Repayment time

If you have the finance to back it up, it is always preferred to take the loan with the least repayment time possible. Banks prefer to have a reduced repayment tenure when approving loans as there is lesser risk associated with it.

7. Exisiting Bank Customers

Banks value their old customers a great deal and look out for them. Maintain a good as well as a stable and long relationship with whichever bank you trust. Someone with a 15-year long ‘good’ relationship with a bank is more likely to get their home loan approved compared to someone who has hardly been with them for a year or two.

Lately, with centralized bank processing and credit checks, Banks can easily identify good customers even though they have not been a customer earlier. So this system of bank loyalty is not a prominent as earlier times.

8. Joint Home loans

Your spouses’ stable source of income helps while planning to buy an apartment which would require you to get a home loan. Banks consider such cases and quicken the approval process because the more the source of income, the more the capacity to repay the loans on time. Having double income in the house makes your appeal for a home loan a solid application to consider by the banks.

9. Enough Income to sustain

Banks want to ensure that you have enough income to sustain after repaying all your EMIs. They do not want to be responsible for having you in a position where you are financially drained as that would result in default. So it is important to have enough money left in your account after the proposed EMI is deducted. Banks look at your annual income and salary slip precisely for this reason.

10. Focus on the documents

There are various instances where home loan applicants have been careless with their official documents. Please know that they are all checked and re-checked by banks before they move ahead with approving your home loan. Therefore the more mistakes you make while filling out the application form- like writing your bank account number or essential salary details – the longer it is going to take to correct them and then get verified.

Read through the form carefully so that you are aware of all the clauses and there are no financial issues that might arise later on. Official documents are very necessary for quickening the approval procedures. Choosing builders who have tie-ups with top banks is a quick way to accelerate the whole process. Some of the banks that ASBL has partnered up with include HDFC, Kotak Mahindra, and Bajaj Finance.