Credit Information Report

Many factors can affect your loan application. However, your Credit Score and Credit Information Report are the most important. Nearly all banks and NBFCs now have access to your Credit Score to approve or deny your loan application. Credit Score is an integral part of the loan application process. It is derived from your Credit Report. Therefore, it is imperative to have a clear understanding of your CIR. The following five elements make up CIR:

1. Personal information: This includes your personal information, such as your name and date of birth. PAN, Voter ID, Passport Number, Driving License etc.

2. Contact Information: Fill this field. This section contains your current and permanent addresses along with phone numbers.

3. Employment Information: This section gives the lender information about your income, including details that the borrower may report. The reported income is the amount you declare during your loan application. It may not be your most recent income.

4. Account Information: This section contains information about your credit cards and debit cards as well as loans. You can also view a detailed history, including payment defaults, patterns, and overdue amounts.

5. Information for Inquiry: Investigation and inquiry is made from Three people in the same line.

Get a Home Loan at the least interest

Question: How do I apply?

Answer: Choose a place where the interest rate is lower than market rates or where overheads are less. Also, make sure you apply where customers are treated well before and after your home loan approval.

Compare the rates of interest from all banks. Most home loan providers charge almost the same rate. Compare the overhead fees. Contact The bank that credited your salary.

Ask the borrowers who have been with the bank or housing finance company about their experiences. 

Choose a bank with a manager you feel comfortable liaising with. 

A bank that offers a term loan or a cash credit limit is better for businessmen.

 Clarify with your bank to see if the project you’re interested in investing in has got approval. 

 choosing a floating rate of interest for a loan is a good idea as there are no prepayment charges.

Ask the sales staff of projects if they have any bank connections to help you get loans when you book a flat to avail a bank loan.

Margin Money/Your Share in the Purchase Price Arrangement

Here’s how to arrange margin money to buy your dream home.

 You should begin saving from your first job with any company. This can be over 4-5 years. You may be a bachelor, married, or have children during this time. Even if you have very small children, your expenses will be low during this time. This is why you can save lots of money by investing in different financial instruments. on following this plan , you will be ready to purchase your house by 28-30 years of age.

If you don’t have the capital to invest or save in the early years of your career and are looking to purchase a house, several options can help you get margin money.

Employers may offer employees loans, such as a loan against PF. You can partially or completely withdraw provident funds amount. Some organizations offer bridge loans at a lower interest rate for employees.

You can borrow against gold ornaments or sell them if you don’t use them.

You should consider selling a piece of land whose value is not appreciating in line with your expectations or if you don’t intend to build a home on it. People living in cities can consider selling their agricultural land in the villages if they don’t want it anymore.

Liquidate your investments (like a mutual fund, shares, recurring deposits, FD, etc. These investments are not earning returns that match your home loan interest rates.

You can obtain Personal loans from other financial institutions or banks, but they should not add to your finances. You should apply simultaneously for both a personal loan and a home loan. This will affect your eligibility for one or the other. 

You should not take any loan with your credit card as the high-interest rates could trap you in debt. Hence, you can apply for a top-up loan if you have taken a home loan in the past two years. You can use this as margin money to fund a new loan.

Loan can be taken from a provident fund account if it is more than three years and life insurance policies. 

Depending on your proximity with them, you may get help from family members or friends.

You may be free from financial obligations, such as the education and marriage of children, and has your own home and a successful job or business. However, if your children or spouses plan to buy a home, it is worth considering provided they have the repayment capability and honour deadlines.

 Nowadays, property prices are high and young people don’t have much savings. This does not mean that children should be dependent on their parents for financing their investments. It would help if you considered this a financial help, and you must repay the amount within a specified time frame.

It would help if you didn’t let buying a house throw off your other long-term plans like your retirement plans or higher education of children.

Sometimes, you might have to deal with a problem like when you close a house sale for 50,00,000. The seller informs you that he will take 20,00,000.00 in cash and register the property for 30,00,000. Banks will consider your sale consideration to be only 30,00,000.

 This amount is stated in the agreement to sell. The sanctioned loan amount will be 27,0000. Because the seller wants to minimize capital gains tax, he wants to keep the registry as low as possible. Listening to the seller will cause you to lose an opportunity to obtain additional loans that could have helped with all your expenses, both seen and unseen.

Keep this in mind:

1. You should always choose the maximum home loan if you’re looking to build a house. Because your budget could increase if you build your house in construction. It is always better to estimate construction 25% more than what is required.

2. If you apply for a loan for housing, make sure you get the maximum term (loan period); this will allow you to pay off the EMI and cover your expenses if they increase.