When people buy homes, their primary focus tends to shift
from affordability to dreams. Though, with the easing cost of houses and
housing finance in India, it is impossible to stay in a surreal stage for a
long time. However, it is possible to dream within your means. That's why the
housing companies in India have created such amazing and useful online tools to
help you along the way. So, if you are a first-time borrower, here is how you
find out the home and home loan you can afford.
Step 1: Use home loan eligibility calculator
This is the most basic form of home loan calculations. But,
it is a useful way to identify the suitable principal amount for your housing
loan. But, as you may not know it is just the first step. You are far away from
identifying the home loan you can actually afford. There is another step you
must take. Then you can estimate the home loan you can afford.
Step 2: Use home loan EMI calculator
You know the rough amount of home loan you can get. However,
you will need to have the repayment ability to pay the applicable EMI of that
loan each month. This repayment ability is measured in two vital factors.
Firstly, you must be able to set aside sufficient amount to pay the housing
loan EMI each month. So check out the home loan EMI calculator to calculate the
approximate EMI you will need to pay. You will need to run several housing loan
EMI calculations to ensure that it fits well into other monthly expenses. For
example, credit card bill, utility bills, insurance premiums, etc. So, after
making these calculations, you will have a decent idea about the home loan you
can afford.
Step 3: Check your credit history
This is not a mandatory step. But, things can go wrong
without it too. You need to know your credit score and basic credit history.
This plays a crucial role in home loan approval. In simple terms, online tools
are really helpful. But it does not account for the realistic state of your
finances. Any Housing Finance Companies
Will check your credit history once you submit a housing loan
application. So, it is best to find it out yourself. It will allow you to
eliminate the housing finance companies that will not accept your application.
Most banks and housing finance companies state their eligibility criteria on
websites. Their representatives answer questions regarding the expected credit
score. So, you must take a simple online credit report for s clear
understanding of your finances.
[Source: http://www.sooperarticles.com/finance-articles/loans-articles/quickest-way-find-out-how-much-home-loan-can-you-afford-1378285.html?]
