Your eligibility is the deciding factor for the approval of a home loan. Not meeting the eligibility criteria for any loan lead to rejection of your application. And if approved, it can cause the interest rates to soar.
If you are looking to apply for a joint home loan, this risk becomes more significant. Lending institutions verify the eligibility of both the applicants before approving the loan. Hence, before applying for a joint home loan, it is best to take an eligibility test. Apply for a joint home loan here.
If you do not meet the criteria, here are some tips to improve your joint home loan eligibility:
Clear Your Existing Loans: While this might not be possible for some people, it is recommended. Existing loans lower your credit value as it increases your debt-to-income ratio, which means that your existing EMIs might make it difficult for you to add another one to the list. It is especially applicable to married couples applying for a joint home loan.
Improve Your CIBIL score: A low CIBIL score of either of the applicants can cause problems with the eligibility of a joint home loan. So, pay your credit card dues and make your existing credit payments on time to improve your CIBIL score. A low CIBIL score can lead to a high home loan rate of interest.
Additional Source of Income: If the co-applicant has an income, this can significantly increase your eligibility. It shows as another source of income, hence your debt-to-income ratio is low.
Taking a joint home loan in itself improves your eligibility of taking a home loan.
