Top 5 Parameters Considered by a Home Loan Eligibility Calculator

Published: 19th August 2011
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According to the US Foreclosure Marketplace Report 2011, there are 803,489 notices for defaults on properties. Further analysis of the data shows that there has been a 24% rise in the default figures as compared to the 2010 data.



Due to such disturbing trends, getting a home loan becomes difficult for an applicant. The same reason leads to the reluctance to grant home loans by banks and other financial institutions. However, you can increase your chances of getting a home loan if you use a Home Loan Eligibility Calculator before you file your application.



Home Loan Eligibility Calculator: Parameters Checked



A major drawback in the assessment of eligibility is the qualitative nature of the terms and conditions to which an application is subject. As far as financial eligibility is concerned, a Home Loan Eligibility Calculator does its job. Some of the parameters that are considered include:



1.Clear Title of the Property - The property that is to be financed should have a clear title. The ownership should not be disputed or challenged in a court of law. In case of a joint home loan or repurchase of an existing home via a loan, an applicant also needs to obtain a no-objection certificate from the existing owners.



2.Sources of Income - Income source is a major factor considered by a Home Loan Eligibility Calculator. An applicant should have a reliable source of income, which should not be speculative in nature. Also, the nature of the industry matters significantly in the granting of a home loan.



3.Existing debts and related EMIs - If the applicant has a lot of debt and most of his income is eaten up by EMIs for other loans, credit analysis will not show an encouraging set of figures. Such an application is bound to be rejected.



4.Age of the Applicant - Generally, a home loan stretches itself over a period of 15-20 years, which is a considerable amount of time. This makes the age of the applicant a significant factor in the assessment for eligibility.



5.Financial Condition This implies the ability of a person to repay the loan in the stipulated time period. A good Home Loan Eligibility Calculator will carefully check the repayment capacity and credit worthiness of an applicant. This analysis can act as a deal breaker if it does not satisfy the minimum criteria.



Knowing about these parameters provides a better chance of disbursement of a home loan to an applicant, but the final decision lies with the bank. Fulfillment of conditions may not guarantee a loan to an applicant.



All of the above said parameters provide a glimpse of the actual eligibility for a loan. For better analysis use the Citibank Home Loan Eligibility Calculator. It provides the most accurate results, along with three major conditions of providing the home loan. Visit www.online.citibank.co.in to check your eligibility for a home loan or for information on loans available.

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