Eager to buy a home? The long wait for approval can douse the flaming desire. Home loan applications have to go through a process to get approval. And the process can be punishing.
Even in this digital age, there’s a mountain of paperwork. Documents have to be submitted. They have to be vetted and verified by the lender. The housing market is challenging for even professionals. As said, the process is the punishment for home loan approvals.
That being said, nobody wants to spend weeks and, in some unfortunate cases, months for the home loan to fructify. If purchasing a home quickly is the goal, then cutting short the approval time for the home loan becomes the priority.
And like most things in life, there is a way to get over this bump in the road, get the approval period truncated, and get the loan approved quicker than one would have expected if left to the organic method.
4 Ways to Shorten Your Home Loan Approval Time
For starters, get into the mood of the process, so to speak, to get that loan in hand. Leaving it to the vagaries of time and the lender’s idea of urgency will cause delays. So, use the home loan eligibility calculator to prepare a strategy to shorten the home loan approval process.
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Ensure that You Have a Good Credit Score
A good credit score is important for home loan approval. It is the requirement whether the loan approval process takes its own time or is hastened deliberately.
The CIBIL or credit score is the credit history of the home loan applicant, whether or not he had availed of other loans, and whether or not he had been prompt and regular in making EMI payments. If CIBIL does not meet the minimum credit score for a home loan, the applicant should strive to improve their credit score.
Using a home loan eligibility calculator will help improve the credit score in many ways. One, it will prioritize making all payments on time, including credit card payments, existing EMIs, and utility bill payments. Two, it will inspire the applicant to keep track of the credit report and check them thoroughly for errors.
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Scout for The Right Lender
Every lender has a different loan policy. One may have a policy of fast approvals, and another may have a long-drawn process.
The best policy is to get the home loan pre-approved, i.e., get the lending bank to check credit score, income, etc., and decide eligibility for the home loan beforehand.
Doing this in advance helps decide how much loan amount the applicant is entitled to, given his current credit score and other markers. Doing so also helps streamline the process, making it easy for the borrower.
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Make a Bigger Down Payment
To make approval faster, deposit a proportionately higher down payment with the lending financial institution. Lenders usually ask for a down payment of 20 percent of the loan amount.
A higher down payment helps secure a lower interest rate. In case a 20 percent down payment is difficult, get hold of a co-applicant with a good credit score.
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Get All Things Needed in Order
Ensure all the conditions for the home loan are met. From the credit score to the verified and vetted documents, including income and address proof, ensure the information you submit to the lender is accurate.
Maintain a clean credit record. A stable income will help. If self-employed, make sure that there is a track record of generating regular and continuous income. Last but not least, estimate EMI affordability.
In Conclusion
There are always several home loans in the market. To get a home loan quickly, you should have a healthy credit score and the necessary papers in place. The best policy is to complete the application process as soon as possible. Also, it helps to check which lender takes the least time to approve.