A home loan can be of great help if you are planning to buy a house or renovate your existing house. However, before you begin with the process of applying for a home loan, it is essential for you to determine your home loan eligibility. Major factors that impact your home loan eligibility are your age, financial stability, your credit history, and current credit score. All of these will provide the financial institution a clear understanding of your loan repayment capacity. Therefore, a good credit score and higher monthly disposable income will make you eligible for a higher home loan amount. In addition to that, the interest rate and the loan tenure that you opt for also contribute to deciding the home loan amount.
Once you apply for the home loan and provide the requested documents, the loan-provider reviews your application and sanctions the loan. Following which, you will receive the sanction letter stating the loan amount, tenure and the interest rate, among other terms of the home loan. The terms stated will be effective until the date mentioned in the sanction letter.
Is it possible to increase or decrease the home loan amount post sanction of the loan?
Yes. You can make modifications to your home loan amount at any point. However, any increase in the housing loan amount is subject to eligibility calculations, repayment capacity, and cash budget. Most financial institutions will charge you fees on the new amount. Whereas in case your loan amount gets reduced later, any excess fees paid gets adjusted towards subsequent payments that you would be making. It is to be noted that as per legal terms and conditions, the fee once paid is non-refundable and thus, home loan providers may refuse to adjust the excess fee paid on this account.
In order to change your home loan amount post sanction of the loan, you will have to make a fresh application and a fresh sanction. Additionally, you will be charged an application fee once again. Getting a home loan sanctioned can be tedious in some cases. Hence, in order to avoid any inconvenience in the later stage, it is recommended that you should be sure about the loan amount and its tenure before applying for a home loan.
With prominent Non-Banking Financial Companies like Finserv Markets, applying for a home loan is a hassle-free process. Seamless online transfer, 100% transparency in all dealings and freedom to choose your own repayment tenure, are some of the key features of the home loan provided by the Finserv Markets. Keeping in mind all these benefits, you can consider opting for a home loan balance transfer from Finserv Markets.
Finserv Markets also provides you with an option of changing your EMI payment amount during the life of a loan. Lastly, Finserv Markets also provides you with an option to avail customized insurance schemes on your home loan, thereby protecting your family from paying your home loan debt in your absence. So why wait? Take your first step towards purchasing your dream house now.