How much do I qualify for?

How much does one qualify for a particular home loan is basically something which depends on a lot of factors. We would, in this article, try to look at these factors and help you understand as to how much you deserve as far as you home loan needs are concerned.

Your credit history

Your credit history is one important aspect which clears it out as to how much loan you should be getting or not getting. The terms and conditions of the home loans also depend to a huge extent on this credit history. Credit history is nothing but the number of loan applications or credit applications you have made in the past and your performance relating to them. If the dues and payments towards these past credits have been paid by you on time and promptly, then there are very good chances of you getting much better home loan offers in the future. But had there been defaults and delayed payments, then that would very badly affect your credit score and also your chances of getting loans in the future.

Your personal details

If you are into a well to do family and have a very high paying and stable job, then it is most likely that you would get better offers along with the quick processing of the loans. The reason why most of these banks and financial lenders ask for such proofs is because they want to ensure that they are working with a financially sound person so that they would not have to face the problem of delayed payments or defaults in the future.

The length of the home loan period

The length of the home loan period that you are asking for is also very important in this regard. If you are asking a loan for a longer period then you can get bigger loan amounts as the number of months you would be paying the interest amount would increase and that would ultimately result in profits for the lending company. But if the loan is for a shorter period, then things would not be much in your favour.

Your employment status

If you are working in a reputed company and having a stable job, then the chances of you qualifying for the loan is pretty much high. But, if you are running your own business or if you have not started earning as yet, then the chance of you getting a loan is very unlikely. This is mainly because of the uncertainty of the monthly payments from your side which might be affecting the minds of the lending companies. Having your own business might sound huge but it is also a very risky business and the income earned on the monthly basis cannot be determined accurately and will also not be very stable. And these companies would under no circumstance or condition would like to expose itself to such risk and put itself on the likeliness of making a loss rather than a profit. But if you have a reputed or a very well established business, then things could be different.

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