A home loan taken to buy or build a new house has many tax benefits under sec 80C.
Under Section 24, the house owner can claim a deduction of INR 2L from total income for the interest amount of the EMI. On a self-occupied house property, you can claim up to INR 2L. But for a let property, there is no upper limit for claiming interest deduction. The condition is – you must construct the house within five years from the financial year in which you took the loan.
The incentives thus offered by the Government of India make encourage a lot of people to apply for home loans. Here is a primer on how you can get your home loan approved instantly, to build a new house for your future and fulfill your dreams.
How To Get Your Home Loan Approved Fast
It is not inexpensive to buy or construct a home, and in most cases, people turn to home loans to finance the venture. Lenders approve the loan only after taking into consideration your repayment ability. Any irregularities in the home loan application are enough for them to reject your loan so that you not only return disheartened but also suffer a drop in your credit score. Going into a home loan situation without knowing how to get it approved fast will reduce your chances of securing it.
Here is what you must do to secure your home loan at the earliest –
1. Hold A Stable Income Before You Apply
Lenders need to make sure that you will be able to pay your home loan EMI on time. This usually means that they need a certain amount of salary from you; the amount varies from one city to another.
For the approval of your home loan, ensure that you fulfill the criteria.
To better your chances on the income front, you can apply for the loan jointly. The co-applicant is most often your spouse, as long as they are gainfully employed. You can combine the two incomes for faster loan approval.
2. Have Savings Ready For The Down Payment
Pay at least 20% of the property cost as a down payment. You can borrow a lesser amount and repay faster. That will help you save a lot of money down the line and prevent you from bearing the burden of debt for decades on end.
It also proves your trustworthiness to the lender. They may sanction the home loan at lower interest rates if you pay a significant portion of the total cost as a down payment.
3. Hold A Promising Credit Score
Your CIBIL score is crucial for home loan approval. The credit score shows your repayment ability. Increase your score by paying your credit cards bills and past EMIs on time.
Remember that a rejected loan application can bring down your credit score. Therefore, it is wise to apply for loans only if you are reasonably confident that the lender will approve.
4. Have A Stable Employment History
Try not to change your job before the maturity of the home loan. If you do, ensure that it won’t affect the home loan EMI payment. Long periods of unemployment can result in a rejection of a home loan.
5. Keep your Documents at Hand
You cannot secure a loan without the required documents. You have to produce the documents; Property documents, bank statements, address proof, etc.
If you have the documents ready, it will speed up the home loan application process.
Conclusion
Taking a home loan is a major commitment, not only towards the lender but also towards the future you seek to build. Proper preparation can speed up the lengthy home loan application process. To apply for a home loan, and secure it fast, ensure that you follow these pointers with due diligence. You will get your loan sanctioned in no time.
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