The cosmopolitan city of Chennai is a Home buyer’s paradise. The great infrastructure development, IT and ITes growth, abundant employment opportunities and properties available to cater to varied taste and varied budget, makes the city the perfect place to live. The wide range of real estate properties in Chennai ranging from gated community Independent Villas, Villa plots, and trendy Gated Community apartments with multiple amenities provides a wide spectrum of properties to choose from.
As an aspiring home buyer the most critical step after the selection of the property is arranging the required finances. Even when the price of the desired apartments for sale in Chennai is well within your reach it is prudent to avail home loan owing to the Tax benefits. An optimal down payment and a home loan with a feasible EMI keeps your savings safe and also ensures prudent spendings every month to accommodate the EMI from the earning. Since it is obvious that availing home loan is a smart move to buy your dream home, let us look at what it takes to ensure an easy and hassle-free home loan approval.
Property Documentation – One of the most important steps in loan approval process is the submission of all the required documents to the bank. Clear documentation with no discrepancies will facilitate a smooth process. Keep all the necessary documents ready, this includes your
- identity (or ID) proof
- Age proof
- Educational proof (school/diploma/degree certificates)
- Address proof
- Employment details & Office Address
- Income proof
- Bank statements (latest 6 months mandatory)
- Details of the property to be purchased
Once you provide all the details required to file your application you will have to remit the processing fee for the bank to process your application.
Good Credit history – Your credit history determines your credit score which is an indication of your credit worthiness. Your credit score can range between 300 -900, higher the better, and will ensure easy and hassle-free home loan approval. A good credit score is achieved by maintaining a good credit history, maintaining a low credit utilization, and timely repayment of all loans and credit card dues. Credit utilization is the amount of credit that you are eligible for compared to how much of it you utilize. This indicates your dependency on credit money, and a credit utilization below 30% is preferable and ensures a better chance of loan approval.
Before you proceed to buy your flat in Chennai It is highly advisable to repay your existing loans. In case you are currently paying other loans ensure that the collective EMIs does not exceed 40%-50% of your income. Similarly if your home loan EMI goes beyond 40% – 50% of your income, a hassle-free loan approval is difficult.
Home loan with co applicant – Though having a co-applicant is not mandatory, it improves the chances of loan approval. It assures the lender of timely repayment as more than one party has the legal obligation of timely repayment. It also improves the the loan eligibility and facilitates other favourable conditions like better interest rate and more loan amount. The age limit for loan application varies for each financial institution and bank, however the general guideline indicates that individuals ageing 20-65 yrs can apply for home loan. Having a younger co-applicant improves the chances of loan approval.
While scouting for apartments for sale in Chennai always have in mind the above mentioned factors which will ensure a smooth and easy loan approval process for your dream home. Another very important criteria is the selection of a reliable RERA approved developer like Alliance, South India’s Leading real estate developer. Owing to the financial credibility and stability, and the clear documentation, financial institutions quickly process and approve loans for the projects launched by the builder. Investing in a project by the reliable and trustworthy developer one can experience a hassle-free loan processing and approval.