In today’s times, buying a house without any kind of financial support is something that is largely unheard of. Most homebuyers can only afford a property purchase by applying for a housing loan and arranging for the required funds. Now, while there are various home loan plans offered by different financial institutions, all of these lenders have certain home loan eligibility criteria. Borrowers need to be aware of their home loan eligibility before applying for a loan in order to avoid their home loan application being rejected.
This is where borrowers can find a home loan eligibility calculator to be very useful. This calculator is an online tool that one can find on most lenders’ websites. It helps the user understand the loan amount that they can qualify for based on their home loan eligibility.
For those who are unfamiliar with this kind of calculator, read on to learn more about it in detail:
Steps to calculate one’s eligibility using a home loan eligibility calculator
It is very easy to make use of a home loan eligibility calculator. All that one needs to do is fill up certain information that the calculator requires, based on which the tool will display the loan amount that the user can qualify for. First, the calculator will check whether the user is salaried or self-employed, or self-employed non-individual. Next, the calculator will also check whether the user is already an existing customer with a specific financial institution. Once this is done, enter the monthly salary that is received in hand. Next, set the existing monthly instalments that are currently being paid. After this, mention the tenure (number of months) in which the home loan instalments would be repaid. Lastly, the calculator will also require the interest rate of the home loan. Based on the details provided, the home loan eligibility calculator will then display the loan amount that the user can apply for.
Why is it important to use this calculator?
A common reason why some borrowers struggle with clearing their home loans is because of a lack of planning. It is very important to be aware of the monthly instalments of a home loan beforehand. This is exactly what a home loan eligibility calculator can help with. With this calculator, a user can be aware of the loan amount that they are eligible for. This reduces the chances of getting their loan application rejected. If the loan amount displayed by the calculator is acceptable, the user can go ahead and apply for the loan. If the displayed loan amount is not satisfactory, they can then focus on improving their home loan eligibility first.
Along with a home loan eligibility calculator, one should also use a home loan EMI calculator. An EMI calculator will help in displaying the EMI payments of a specific home loan plan. Users can make changes in the details provided to find a suitable loan amount, tenure, and interest rate. This will help in avoiding any financial struggles that might come up in the future.