A credit score can be obtained from a number of portals that charge a fee. For better rates on your home loan, a CIBIL score of more than 750 is ideal.

Home loans are approved by 80% of borrowers with credit scores of 750 and above, according to CIBIL data. If your CIBIL score is low, you may be denied a loan or you receive a loan with a high rate of interest if you do apply for a loan.

2. Ensure you have all your financial documents ready

If you want to apply for a loan, you need a variety of financial documents. This will make the processing of your application more efficient. The most important documents you need to present initially are the last few months' pay slips, your tax return, and your bank statements.

3. Online Loan calculators are useful to calculate your monthly payments

Calculating your affordability with a loan calculator can be very helpful. The EMI calculator for home loans can be found online easily. It calculates your monthly payment based on different factors e.g. average home price, interest rate, down payment, etc.. The calculator can be used by potential borrowers to estimate the amount they need to borrow based on their salary.

4. Make sure you compare home loan offers

The same interest rate on two loans is not the same. Besides interest rates, there are other factors that affect the cost of loans. Consider the points or fees, for example. There are a number of factors that go into determining the cost of the loan.

5. Take the time to get pre-qualified

By getting pre-qualified for a home loan, you will learn more about how much you can borrow and what kind of house you should look for. Information about your savings, income, and other financial matters will be helpful. You might be asked for pre-qualification by real estate agents in order that they know what to look for.

6. Discover which type of loan is right for you

There is no guarantee that a fixed-rate loan is the right option for you just because your cousin did it. Having a predictable rate may be more appealing to him/he than a variable rate. Floating interest rates may be preferred by your colleague. The market rate moves according to the base rate. You don't necessarily have to choose this option either. Your particular financial situation should determine the type of loan that you choose.

7. Keep your lender informed by responding in a timely manner

Applying for a mortgage doesn't mean your job is finished. Additional information may be requested by a lender, which must be provided as soon as possible. You may lose your home if you take too much time to respond to the lender, which in turn may delay the closing of the loan. Make sure you respond to lenders within the agreed time-frames if you don't want to lose out on your dream home and your deposit.

8. Make sure your credit remains strong throughout the loan process

The lender may check your credit again if they accepted your application after checking your credit before. If anything has changed on your credit report, lenders may pull it again before closing your loan. During the loan processing period, you should maintain your credit. To keep your credit score high, don't take out new credit cards or borrow more money. Keeping your credit in good standing also means keeping up with all your payments.

9. Examine the loan agreements

Before you sign the loan agreement, make sure you have read and understood it. It is important to read all the terms and conditions. Keep a photocopy of all the agreements in a safe place.

We hope you found this short article to be informative when deciding on how to approach your home loan. Please feel free to browse through some of our most popular dream homes here.