If your incomes are spread over many entities, look for a bank/lender that will consider all of them.

Club your spouse's income by including him/her as a co-applicant. Check if the bank will allow for clubbing the income of parents, brother, and son/daughter also.

Property Eligibility:

1. Some banks that treat new property, under-construction property and resale property differently for loan eligibility. Go for the best option.

2.Finalise your property before choosing the lender.

3. Planning to disclose a lower value in the agreement (to 'evade'stamp duty/transfer charges)? Find out if it will affect your eligibility!

4. Is your property under construction? Check if builder and the stage of completion are acceptable to your bank.

Cost Eligibility:

1.Is your interest rate calculated on a monthly rate or a daily rate basis (but certainly not the annual rate basis)?

2. Are the fixed rates 'fixed' for the complete tenure of the loan?

3.How are changes in floating rates effected?

4. How much do upfront charges (administrative/processing/legal charges) add up to?

In case of prepayment and transfer of loans:

1. (a) Is there clear-cut clause for prepayment?
(b) Are the terms for the transfer of loan clear?

2. Is there an option whereby you can choose between the two:
a) Reducing EMI,
b) Reducing the loan tenure?

3. You might have to shift your loan (refinance) in the future. Are there many documentation and procedural requirements that need to be taken care of?

A lot depends on your eligibility. Simple put, if you don't really need the money, all banks and finance companies will offer you unbelievable rates! Having three years of good credit history is a pre-requisite. If you feel that the loan you can get is inadequate, make your spouse (if he or she is earning) a co-applicant. Look for a bank that accepts other co-application like your father or son. Combined income levels will help you get bigger loans. And did you know that if you are about to get married, your fiancées income, too, can be considered for getting a loan sanctioned on your combined income? The disbursement of the loan, however, will be done only after you submit the proof of your marriage. Moreover, with variable pay becoming the order of the day, make sure that the lender includes the incentive and annual component of your income in his evaluation.

In the case of salaried people, things are relatively easier as the income is regular. Persons with irregular cash flows have to put in an extra effort to get the maximum loan amount possible. If your income comes from more than one source, check if the bank considers all of them. Proper accounting of all incomes makes it easy for the bank to evaluate your eligibility.

Most mortgage lenders give loans up to 85% of the property value in case of purchase of new property. The lenders can be flexible for a few percentage points but this again depends on your profile and negotiation. The limits are different for loan taken to buy an old house (usually 80%). If you are buying just the plot, then you'll get about 70%. Please note that all values are approx.

If you are taking a home improvement loan, 80% of the amount can be financed. Nowadays, builders do extensive interior work. By including that in the total cost, you can get a bigger loan.

In most cases where you are looking for a loan for a new property, the builder would have tied up with a bank/lender. This might get you a better deal as the builder is getting the bank many customers. But you need to get a sense of the overall cost saving. It is possible that what you perceive as lower rates are being recovered by the builder as additional costs.

Let us help you choose a home loan!