Along with finding the perfect house for yourself, the first question that comes to your mind is “how much Home Loan can I get?” Figuring out the nuances of a Home Loan might look like a tedious task, but you can turn it into a simple one if you follow the right steps. Understanding Home Loan sanctioning and disbursement won’t take too much of your time. Here is a list of things you can keep a check of while applying for a Home Loan.

Things to Consider While Applying for Home Loan

The Formalities

Getting all your paperwork in order is the most essential step towards getting the Home Loan you want. Here is a complete list of documents required for Home Loans:

  • A completed application form and a set of passport size photographs.
  • Proof of identity (any one).
    • Passport
    • Permanent driving licence
    • PAN card
    • Aadhar card
    • Election card/Voters ID
  • Proof of residential address (any one).
    • Passport
    • Permanent driving licence
    • PAN card
    • Aadhar card
    • Election card/Voters ID
    • Electricity/water bill
    • Gas bill (for pipeline connections)
    • Property tax bill
    • Domicile certificate from Municipal Corporation
  • Proof of age (any one).
    • Passport
    • Permanent driving licence
    • PAN card
  • Financial documents for resident Indians – These include salary slips, bank statements and IT returns.
  • Financial documents for NRIs.
    • Valid Indian passport with Visa stamps.
    • Copy of work permit/equivalent documents supporting the NRI status of the account holder.
    • 3 months NRE/NRO statements.
    • Overseas bank account statements for last 3 months showing salary credits.
    • Latest contract copy/salary certificate/wage slips.
    • Local bureau report of the country where customer is based.

Are You Eligible?

Your Home Loan eligibility is essentially an indicator of whether you can actually afford a Home Loan or not. There are a lot of things which are taken into consideration to make sure that, under the current circumstances, you won’t default on a Home Loan. Usually, lenders will look at the following factors to check whether you are qualified for taking a Home Loan or not:

  • Gross monthly income
  • Loan amount
  • Loan tenure
  • Interest rate
  • Any current EMIs that you are paying
  • Present age of applicant and retirement age

Using these factors, they will calculate the EMI you need to pay. If they feel that you can afford that amount, then congratulations! You are now eligible for a Home Loan.

In case you’d like to check your loan eligibility before approaching a lender, you could utilise a simple online Home Loan Eligibility Calculator.

What to Give, What to Take

Once you have been deemed eligible for a Home Loan, you need to finalise the loan amount that you’re going to borrow. This will depend largely on your financial situation, the duration of the Home Loan, and the interest rate that you’re looking at. Keep in mind all your recurring expenses and current loans, if any, before making a decision about how much Home Loan can be sanctioned by the lender.

Try and get hold of a bank-approved valuator to evaluate your property. This will give you a better idea of how much money you need to arrange for the down payment. After the evaluation, you can use the online Home Loan EMI Calculator from Bajaj Finserv, to calculate the correct EMI value for you.

If you follow these steps when you look for a Home Loan, you can lie back, relax, and rest assured that you’ve got yourself the best Home Loan on the market.

Apply for Home Loan Online Check your Home Loan Eligibility