Home Loan: You decide how much home loan you should get, not the bank! You just have to adopt these methods...

Everyone wants to have their own house. But in this inflation, buying your own house seems like a dream. A home loan helps a lot in realizing this dream. Looking at the rising interest rate of home loans, we hesitate a lot.

If you want to take a loan of a higher amount, then you can adopt some methods. Atul Monga, CEO and co-founder of Basic Home Loan has given his opinion about these methods.

Pay attention to your credit score.
First of all, you should check your credit score. If your credit score is decreasing due to any loan, then pay attention to it. You have to take your credit score above 750 so that your chances of getting a loan increase.

If you already have a loan running, then reduce the debt-to-income ratio by repaying it. This ratio determines whether your monthly income is in the right proportion to repay the existing loan. A low debt-to-income ratio will help you get a new loan at a reasonable interest rate.

Check your finances
How willing are you to repay the loan amount? Do you have enough money to pay a higher down payment? You should find answers to these questions before applying for a loan. Make sure you have 20 percent or more of the property value for the down payment. This will reduce your loan burden and you will get the loan amount at a reasonable interest rate.

Many people do not have enough savings to pay the down payment. So before applying for a home loan, make sure you have enough savings. Or you can use your emergency fund to strengthen your loan application.

Atul Monga, CEO and Co-founder, of Basic Home Loans

Consider different loan options.
You should not finalize the first loan offer. You can visit different banks, mortgage institutions, and credit unions and check where you are getting a loan at a lower interest rate. You should get quotations of interest rates, loan tenure and fees, etc. and only then finalize anything.

Documents required for loan

Salary slip for job verification

Income tax return (ITR) of the last two-three years

Bank statement

These documents reveal your regular income and financial stability. Apart from this, proof of residence will also have to be given.