A home loan can finance the purchase and renovation of a residential property. Whichever is your future plan, it’s a good idea to learn in advance how to get quick approval for the best home loan. Here are some useful ways to increase your chances of fast home loan approval.
Make Use of Your Income
Do you have a high annual income? Then you can prove it to the lending bank with the necessary income proof documents for a quick home loan approval. A high income can also help you get a loan of a higher amount. That’s because the bank then concludes that you earn enough to afford a big loan and can, therefore, repay it over the chosen tenure. So, there’s no problem in granting your loan request right away.
Build a Good CIBIL Score
A CIBIL score is calculated based on the history of your credit and loan repayments. It shows your creditworthiness. Therefore, before approving a home loan, a lending bank in India will check your CIBIL score. It’s a 3-digit figure ranging from 300 to 900. A high score (700-900) can help you get a big loan quickly. Plus you can enjoy the best home loan interest rates. So, boost your CIBIL score with regular loan EMI and credit card bill payments.
Add a Co-Applicant with High Creditworthiness
Don’t be upset if you don’t have a high credit score. Just see if you can add a close family member like your spouse with good creditworthiness as a co-applicant to the loan. This can increase your eligibility to apply for a home loan and the chances to be granted the loan quickly. Also, then again you can get access to the most competitive interest rates and a large loan amount.
Be a Loyal Customer of your Bank
Have you been a well-performing or loyal customer of your bank or share a good rapport with it? Then you can use this fact to your advantage when applying for a home loan. When the bank finds out that you have never kept any dues and cleared all payments and been a trusted customer for a long time, it will gladly offer you a loan without delay.
Look for Easy Documentation
The best bank for home loans not only asks for a few basic documents but also allows you to apply for the loan online. This ensures your convenience and a faster turnaround time.
When it comes to documentation, you may only have to submit:
- Valid address, identity and business proofs as required
- Property Proof
- Possession/Allotment letter
- Photocopy of chain title documents and draft sale deed
- No objection certificate from the society
- Any other necessary documents based on the legal report
- Valid income proof
- For salaried applicants: The latest ITR or Form 16/ last 2 months’ salary slip/ last 6 months’ bank statement/
- For non-salaried applicants: P&L statement or balance sheet/ bank statements of the last 6 months or credit card statements/ latest ITR/ GST returns
Remember to check your EMI amount using an online home loan EMI calculator offered by the best bank on its official website.