Home Loan

Factors that Determine Your Eligibility to Receive a Home Loan

Getting a home loan is a tricky affair – to start with. There are a lot of factors that determine the eligibility of the recipients when it comes to acquiring home loans. Thus, if you are looking forward to getting a home loan, you have to be pretty cautious. Nevertheless, let us discuss on this page the factors that will determine if you are eligible for a home loan.

Income

Your monthly income is one of the most important criteria that will determine whether you will get the much-needed home loan from your mortgage broker. The reason is pretty obvious – the income has to be adequate enough to support the monthly EMI payment that you make for the repayment of the loan. Creditors offering home loans hence will take into account your monthly income so that you can sustain the compulsion of the monthly EMI payment.

Savings History

Lenders also want to see evidence of a minimum of four to six months of regular savings. This evidence of regular savings ensures the debtor that you, as a recipient of the loan, are not only financially sound but disciplined enough to make the monthly payment without any hassle. Having enough money in your savings account alone does not satisfy the creditors these days.

Banks and other lenders need to see your genuine savings. For instance, if you pay a 20% deposit, the creditors will generally ask for at least 5% of your property value. That’s because it will act as a genuine saving amount that you have accumulated over a specific time period. This can include a savings account, term deposits, managed funds or shares along with cash gifts or inheritance funds for a minimum of 3 months.

Previous and Current Loans

The lenders will check if you have a healthy record of paying off the loans. However, if you have any history of perpetual late repayment of loans or skipping of monthly EMIs, that will invariably minimise your chance of acquiring the loan. On the other hand, if you have a clean history of timely repayment, that denotes a healthy record of meeting the loan obligations. You will be considered by the lender as a low-risk investment.

There is another very important factor that affects your eligibility to get a house loan in Perth. If you have multiple personal loans at the time of application for the home loan in question, your application is not likely to be approved. That’s because the lenders would prefer the debtor to have fewer other debts. The reason is obvious; they do not want to see their monthly EMI payments being burdened by other parallel monthly EMIs. Thus, if you have multiple loans running, try to pay off as many of them in full to stand a chance of getting a fresh home loan.

Status of Employment

This is one extremely important criterion that will determine whether you will get a home loan or not. If you are a salaried employee, the lender will see the tenure of the present employment and the nature of it. If you are a contractual employee or if you are in the probationary period, you can face issues while getting the loan.

Again, if you are self-employed, a freelancer and run a business, they will check the health and duration of your occupation and your goodwill in the market before getting the home loan in Cannington.

And last but not least, your age is another determinant factor that decides if you are going to get a home loan or not.

Thus, all these issues will determine if you are going to get your home loan.

For further details, call Everyone Finance, as we are one of the most acclaimed lenders in and around Perth.

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