10 Less known conditions which eat your home loan eligibility

Sukanya KumarRetailLending.comYou are aware of the fact that your previous other loans taken from banks which reflect in your credit score take away your next loan eligibility. However here I am writing about some less known elements that can bring down your borrowing ability. Here are they:1. Loans from office: This, even if doesn't reflect in your credit report, can be visible in your pay-slip. The 'deduction' section will show the monthly amount payable by you, which will be captured by the credit appraiser.2. Lesser tenure: Many people want to keep the loan tenure at minimum thinking that they want to close it soon. But they do not realise that lesser the tenure, higher the EMI (equated monthly installment) and lower the eligibility.3. Higher age of co-applicant: Even if the applicant is less than 30 years of age, if his/her co-applicant is 55 years(parents, mostly), the loan tenure will be considered as per the age of the elder person and will be restricted to 10/15 years, depending upon the bank's policy. So, before taking your father's income into consideration for the home loan, think again.4. Number of dependents: A home verification report once expressed that the applicant had 3 children, 2 young sisters and elderly parents to support and wife was a home-maker. Lender took lesser eligibility for that particular applicant expecting higher monthly expenditure than standard nuclear family.5. High monthly outflow: Lenders sometimes seek this information in the application form itself. If your monthly income is Rs 1 lakh and though you do not have any other liabilities, declare a monthly spend of 70,000, naturally your loan eligibility will be skewed.6. Company term loans: If you are a self-employed person and your company has a term-loan running, then your personal credit appraisal will be taken a hit, since as a business owner, some portion of that liability will be bestowed upon you.7. Lower pay scale: Banks prefer giving more exposure to those who are at a higher pay-scale. So, if you earn Rs 20,000 a month, then your loan eligibility will not be proportionate to another person earning Rs 2 lakh a month. Yours will be lesser.8. Higher Loan to value: If you need more loan amount for the property you buy (LTV=Loan to Value Ratio), then your DIR=Debt to Income Ratio will take a hit. Even if you are income-wise more eligible, you will be given lesser. For example, if you are taking a LAP against a commercial property where standard LTV is 50% and if you are getting 60%, then your DIR may be restricted to 50% instead of 60%.9. INSR method of calculation: Though most lenders calculate your eligibility basis your gross (before tax) income, they all do have a method called 'Income to Net Salary Ratio' in which if the net salary is way lesser than the gross salary, then the eligibility gets affected.10. Credit card dues: If you have revolving credit (and sometimes even if you do not revolve, but just swipe it for earning reward points), then 5% of the total outstanding card limit is captured as liabilities and eligibility is computed after that! Hope that you have found at least some of the above few as new information and your time of reading this was worthwhile.Happy Credit, Happy Homes!