Every person has a time in their lives when they want to build a space of their own and be with their family. Unfortunately, we do not always have access to sufficient funds to build that dream home. In such situations taking out a home loan can be a lifesaver. Home loans are one of the most prominent mortgages in India that have helped millions of people to achieve the dream of owning a home.
Making a dream home is a big step for a person. It requires the financial capacity to make something like this. Hence are you aware of the factors that a lender considers before approving you for a home loan? Is it a credit score? Yes, To get approval for a home loan, the credit score plays an important role. To make you understand better, In this article, we have discussed everything you need to know about credit scores that are required for getting a home loan.
What is a Home Loan?
A home loan is also known as a housing loan. This type of loan allows you to borrow money for various purposes required for a house, such as home remodeling, renovation, re-furnishing, or even purchasing a property. With home loans, you can transform your house into a comfortable living environment at a low cost and little hassle.
Renovations are needed overtime in order to meet our changing needs. So, remodeling not only enhances the appearance of your property but also increases its value. Hence if you want to upgrade your house to handle regular wear and tear, or want to address some requirements, or make your living space more comfortable, you can do it without breaking the bank. Here is how to get one step closer to your dream home with the best loan option available.
Is a credit score required to take out a home loan?
Yes, a credit score is required to get a home loan. Because it is vital in determining whether or not a bank would accept your home loan application, it is an essential factor that influences your loan approval possibilities.
Also Read : Do You Know How A Low Income Affects Your Credit Score?
When you apply for a home loan, the bank or the lenders will verify your credit history, followed by your background and your qualification. But if you have a poor credit history, your application will most likely be get rejected. However, if you have a strong credit history, then your home loan application may be handled more quickly.
To keep everything in the proper order, make it specific to duly and timely pay your bills of credit cards and other debts without any delay.
What is the minimum credit score required for a home loan?
Factually, the credit score is a primary criterion used by banks and lenders to determine whether or not to execute a house loan application. When you submit your home loan application, the bank will check your credit score and credit history. Your application will most likely be rejected if your credit score is low and you have an adverse credit history.
If you have a high credit score, your home loan application will be processed faster. A minimum credit score is used by every bank as a cut-off point to determine whether to accept or reject an application. A credit score of 750 or higher is considered good, a score of 350-750 is considered medium or undesirable, and a score of less than 350 is considered poor.
However, it is always a good idea to check your credit score once in a while for a better understanding of your transactional pattern. It is also crucial that you keep an eye on your spending behavior to know where to set limits when necessary.
If you are looking for ways to check your credit score, then Buddy score is the perfect place. There you can narrow your score for free without getting charged a single penny.
Also Check : How to Get a Loan with a Bad Credit score?
Check if you are eligible for a home loan.
To qualify for a home loan, it is advisable to first go through the eligibility criteria required for the process.
The following are the steps that need to be followed for the same:
- The applicant should belong to the age bracket of 27 to 65 years.
- The applicant should be an India
- The applicant should have a monthly gross income of a minimum of ₹ 20,000.
- The applicant should have ITR and bank statements for the last three months.
- The applicant should have a minimum working experience of 1 year in a reputed, recognized, and established organization.
Summing up:
When you apply for a home loan, it is suggested to check the necessary qualifications needed for a home loan. To ensure that you get the best offers and perks, you must also maintain a good credit score. To help you out in such situations, Buddy Loan is the best place for having an exciting insight. It also helps you find solutions to all your financial problems, whether a personal loan or a home loan.
Having any queries? Do reach us at info@buddyloan.com
People Also Ask :
- What credit score is required to get a home loan?
A credit score of at least 700 or closer is required to get a home loan with a lower interest rate.
- What is a good credit score?
An excellent credit score starts at 700 and goes up from there. Usually a score of 750 or higher is deemed satisfactory, and you may attract various offers from the lenders at a lower interest rate.
- Can I get a home loan balance transfer if I have a credit score of 666?
It might be slightly challenging to get a home loan balance transfer if you have a credit score of 666. But many lenders and banks can offer you a home loan at low credit.
- What are the chances of getting a housing loan with a bad credit score?
With a bad credit score, chances are pretty high that your housing loan application might get denied because credit score is the first and foremost thing lenders see before assisting you with any kind of loan service.
- Is a credit score of 773 enough for a housing loan approval?
Yes, a CIBIL score of 773 is satisfactory enough for a housing loan approval.
- How do I check my credit score?
There are plenty of authenticated and trusted web portals and even mobile applications from where you can check your credit score.
- Is it safe to check your credit score online?
Yes, it is safe and secure to check your credit score online by visiting verified and RBI-approved websites.
