Five effective methods to maximize borrowing potential: Home loan amount

Multiple repo rate increases by the Reserve Bank of India (RBI) have raised home loan interest rates. As a result, the number of people who are eligible for a home loan has decreased as the cost of getting one has increased. In addition, these interest rate increases have made it difficult to obtain a larger loan amount.

However, there are strategies that can help you secure a larger home loan amount in this difficult situation. These procedures empower you to understand your fantasy about buying or developing your optimal home.

In addition to the other criteria that banks evaluate during the assessment process, the amount of the loan is determined based on factors like credit score and ability to repay.

1. Focus on keeping a decent FICO rating: A higher home loan amount at a more affordable interest rate can be obtained with a good credit score. Home loans are offered by prominent banks, such as SBI and HDFC, based on customers’ credit scores. Experts say that having a good credit score makes it more likely that you will get a lower interest rate on a home loan.
2. Broaden the credit tenure: You can lower your home loan equivalent monthly payment (EMI) by choosing a longer loan term, making you eligible for a larger loan amount. A viable option is to request an extension of the loan term from the bank.
3. Add a co- applicant: A higher loan amount may be approved if a co-applicant is involved. When two people share the obligation of repaying the loan, banks are more likely to approve it. The bank will, however, investigate both borrowers’ eligibility.
4. Make the down payment larger: An additional successful strategy is to increase the down payment. By making a larger down payment, you can get a larger loan amount if you have enough savings. This activity diminishes your EMI as well as lead to a more limited credit residency.
5. Pay off existing debt: Focus on the repayment of remarkable credits and debit card debts prior to applying for another loan. By paying off your existing debt, you can increase your chances of getting a bigger loan from the bank.

By executing these techniques, you can work on your possibilities of getting a higher home credit sum.

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