The financial capital of India, Mumbai alone contributes 6% of India’s GDP. A dynamic metropolis, Mumbai is not just an economic hub. The city has witnessed a steady growth over the years with manufacturing, shipping, media and entertainment, and pharmaceuticals being the most prominent sectors.
Given the exponential growth rate, employment opportunities in Mumbai are relatively high. The greatest strength of the city is its excellent infrastructure that is attracting the MNCs to set-up industries in this part of India. Unsurprisingly, the real estate segment is also witnessing a high growth rate with a major influx of home buyers from different states in search of job opportunities.
So, if you are searching for a property and considering applying for a home loan in Mumbai, here are some vital tips to get your home loan approved in no time.
Maintain a healthy CIBIL score
Whenever a borrower approaches a financial institution, the first thing that is scrutinized is his/her CIBIL score. If one has an excellent repayment track record, the lender will consider him/her as a potential borrower.
For home loan online apply, individuals with a credit score of 750 or above are more likely to get approved. It reflects your creditworthiness and your capability and the ability to repay the loan on time. Before applying, learn how to improve your credit score for a home loan.
Seek a housing loan amount within your means
When one applies for a housing loan, lenders check his/her liabilities against their assets and income. This means an individual’s income will be stacked against his/her EMIs. A lender will assess if an individual’s income would enable them to pay the EMIs on time or whether he/she might default due to too many prior financial obligations.
You can also use a home loan EMI calculator to determine your monthly payable repayment amount. There are also other benefits of calculating EMIs before taking a home loan. In most cases, housing loan applications are likely to get approved quickly if the EMI amount is below 50% of one’s monthly income.
Maintain a stable income
Having a steady income reflects your strong repayment potential. This puts you in a safe spot as lenders will believe that you are capable of paying off your EMIs comfortably. A good CIBIL score, along with a steady income, also increases the chances of getting a larger sum sanctioned and negotiate the current home loan interest rate to some extent.
Apply with a co-applicant
To increase your chances of loan approval, you can apply for the loan jointly with a co-applicant. Besides, if the co-borrower has a higher income and better credit score, it increases the chances of getting your loan sanctioned significantly.
A lender will take into consideration both the incomes and compare them to the credit amount you have applied for. Hence, if both the incomes are considered for a home loan in Mumbai, you are likely to be eligible for a substantial loan amount. However, you must be aware of how your CIBIL score gets affected when applying for a joint housing loan.
Go for a reputed property and builder
When you apply for a home loan in Mumbai, you have to furnish the property papers to mortgage it to your lender. They have to make sure whether your property can cover the advance, in case of defaults. Hence, a lender will properly scrutinize the builder’s reputation, construction quality, etc. before sanctioning the sum.
A financial institution may also investigate whether the builders have been successfully approved by the local and state authorities. You are more likely to get better home loan offers and quick approval if your housing project has adhered to all the norms diligently.