One can make the dream of buying one’s own home in Surat a reality faster by availing of a home loan. Lenders, including banks and other financial institutions, have made it much easier to avail of a home loan in Surat. However, before taking the leap, the borrower must ensure that they are eligible for a home loan in Surat. There are certain relatively lesser-known factors that may also affect the eligibility for a home loan in Surat. These are as follows:
Unconventional jobs, which may be labeled by lenders as risky, or those with an inconsistent flow of income, can lead lenders to question a borrower’s capability for repaying a home loan in Surat. Too frequent changes in the job also have a negative impact. A steady and consistent source of income enhances the chances of securing a home loan easily.
Age and Remaining Years of Service of Home Loan Applicants
Home loans in Surat are available for tenors of up to 20 years. However, age and remaining years of service could restrict the loan amount. For instance, if a borrower’s age is over 40 years and the remaining years of service are below 20 years, then their home loan eligibility is compromised. For salaried home loan borrowers, the retirement age of 60 years is considered. While, for those who are self-employed, lenders consider the retirement age of 65 years.
The Income of Home Loan Borrower
A home loan borrower’s income is always the starting point to determine home loan eligibility in Surat. Generally, lenders take into account 40% to 50% of a borrower’s monthly income to be available to service a home loan. The proportion of income taken into account for servicing a home loan in Surat increases as the income level subsequently rises. Thus, for a borrower falling under the higher income slab, the lender may take into account a higher percentage of their monthly income. However, the percentage considered to service a home loan in Surat may vary from lender to lender.
Home Loan Documentation
Before going ahead and applying for a home loan in Surat, it is always a good idea to check the list of documents required. This will help streamline and expedite the home loan application process. When applying for a home loan online, one can mail the documents to avoid unnecessary branch visits.
|Identification and address||PAN Card
Aadhar Card and
|Financial proofs||Latest payslips (Most recent three months)
Bank statements (Past six months)
ITR (Two years)
|Property proofs||Sale Deed and Registration Receipt
Copy of Agreement
Approved project plan or MAP
Receipt of Tax
|Existing loans2||Statement of Account (SOA)
2Applicable in case of a home loan balance transfer
Note: Apart from the documents mentioned for a home loan in Surat, other documents may also be asked for by the chosen lender at the time of home loan processing. These will be communicated by that institution’s representatives.
Changing Lender or Balance Transferring
A home loan borrower can switch their lender during the loan tenor. Most borrowers opt for this facility when they observe that another lender is offering a lower home loan interest rate. While doing a home loan balance transfer, a prepayment penalty may be levied. So, a borrower must do the necessary calculations and know the terms before opting for a home loan balance transfer in Surat.
Considering all the above mentioned factors, one must decide the most appropriate lender for a home loan in Surat.
Existing Loans and Liabilities
While computing home loan eligibility, a lender subtracts the cumulative EMI spent on existing loans from the amount already available to service the loan. Consequently, the home loan eligibility is based on the reduced amount. Therefore, if possible, a borrower must try closing existing loans to enhance their home loan eligibility. This will help sanction a higher sum of money as the home loan amount.
A borrower can use a home loan EMI calculator available online to check their expected EMI outgo for a home loan in Surat. To do so:
- A borrower needs to provide their gross monthly income.
- A borrower has to insert the loan tenor for which they wish to avail of the home loan in Surat.
- A borrower needs to insert a current home loan interest rate.
On inserting these, the EMI amount that will be incurred is expected to reflect on the screen.
The Final Word
The home loan amount a borrower is eligible for may increase if one can add a co-borrower. The lender will pool the income of all co-borrowers to assess the amount remaining for EMI outgos. A borrower needs to note that joint owners of the property must also be added as co-borrowers, this is irrespective of whether they fetch separate income.