The Home Loan approval process is not as difficult as it may appear. Banks want to know that you can afford to pay your EMIs (monthly payments) based on your income and that you have managed your income to pay other banks/and creditors as promised in the past.

Credit Ratings

Banks/HFCs will review your payment history, as well as your credit score, to determine if you qualify for a home loan. Credit scores are issued to provide a bank with a risk level for an applicant, based on past payment history and the current utilization of credit.

Income Guidelines for a Home Loan

In order to qualify for a home loan you will need to be able to prove your income is sufficient and consistent. If you are paid a salary then this should be easy. However, self-employed borrowers and commission based jobs are more difficult.

You should have at least 2 years of documented income from the same company, or in the same industry to qualify.