Not all is bad during the global world health crisis! Banks across the country announced a reduction in the interest rate on home loans. A welcome move for prospective homebuyers who long to create an asset. Moreover, these unusual times of uncertainty compel many to take the plunge of buying and living in their abode. A home that you can design for your needs, for your family’s well-being, providing more than just a shelter.
After staying home for months, the need for a spacious home with a view, and ample amenities is redefining the need of today’s home buyers. Before embarking on the home buying journey, it is essential to know about your financial health, and central to it is knowing your credit score. If you plan to buy a home by taking a home loan, then know your credit score. It is the basis of getting a home loan at the prevailing interest rate.
What is a Credit Score?
Credit score ranges between 300-900 and gets computed by rating agencies like CIBIL, Experian and more. If you have availed of a loan or credit card from a bank or financial institution, the lender sends the repayment details to these credit agencies monthly. The credit agencies compile the credit history and determine your credit score. When you apply for any home loan or credit card in the future, the lender evaluates your creditworthiness, depending on this credit score. If your credit score is above 750, you are likely to get good home loan deals.
Are you planning to buy your abode? Know your credit score and mentioned below are some ways of improving it to strike the best home loan deal.
- Add a Co-Applicant: It can come useful during these pandemic times to apply for a joint loan with a co-applicant who would be equally liable to pay off the loan EMI. Such a move reduces the credit risk, enhances overall loan eligibility, and boosts loan approval chances. It can also help in availing a loan of a higher amount if required.
- Apply for a Longer Loan Tenure: Applying for a loan with a longer tenure reduces the EMI outgo at the end of every month. It can increase your chances of getting a home loan. However, you may end up giving a higher interest payout. To tackle this situation, you can opt for making part prepayment or foreclose the loan whenever you have a surplus. Most banks offering home loans give this option and it helps to outweigh the prepayment charges.
- Reduce the FOIR: The fixed obligation to income ratio (FOIR) refers to the portion of your income getting used for repayment of your mandatory debts like loan EMIs, insurance premiums, and other instalments. Such a move reduces the credit risk, enhances overall loan eligibility, and boosts loan approval chances. Otherwise, try to prepay some loans and manage your existing debt to bring down the FOIR within the stipulated range.
- Improve your Credit Score: Try to improve your credit score by adopting a disciplined approach towards credit cards and clearing the outstanding dues on time. Along with timely bill payments, start reviewing your credit score periodically to maintain it.
- Invest with Notable Developer: If you are buying a property by a reputed developer, securing a home loan gets easy. Banks prefer to lend money for projects that are getting constructed by known developers in the industry. The probability of timely delivery of home and financial security are generally high in such cases.
If you are trying to secure a home loan and want to park your money in a notable project in Namma Bengaluru, try Valmark Orchard Square. Valmark have been catering to the people of Bengaluru for over a decade. Known for making spacious homes with thoughtful layouts, we design homes keeping our clients in mind. Spacious inside out, with landscaped gardens, plenty of amenities, and close to the city-centre, we don’t just create a home but a feeling that you and your loved ones will cherish. 
Valmark Orchard Square nestled in JP Nagar 8th Phase spreads over 3.25 acres offers 2 & 3 BHK exquisite apartments beautifully integrating the indoors with the outdoors. Get spoiled with amenities, enjoy life basking in greenery in this warm and carefully curated condominium. The project is nearing completion and most leading banks are associated with it offering home loan facilities. You can connect with our sales team to know more about Valmark Orchard Square and available unit options. There is also the exciting work from home kit that is being offered with Valmark Orchard Square. Thoughtfully christened as the Mercury WFH Kit, you get work from home essentials and accessories worth Rs. 2 lacs. Hurry, know more, and claim the offer now!
