Owning a home is an essential goal in every common man's life. However, sometimes not having enough savings can make a delay. It is where financial support in the form of a home loan comes into play.As easy as it may sound, there are certain things that no one tells you about applying for a home loan. The initial step you need to take is to ensure you're eligible for the loan. Initially, lenders and banks can determine your eligibility for a home loan based on your income and ability to repay. Other important factors include age, qualification, financial position, number of dependents, the income of a spouse and stability of employment. There are many home loans offered by various banks at different interest rates. Before taking a loan, you can utilize an online EMI calculator to know how much EMI you'll have to pay every month.

Let’s look at a few things that no one would tell you about your home loan eligibility:

1. Young Applicants are Also Eligible for a Home Loan

Many of you think that home loans are only for individuals beyond 40. But it is not the case. Financial institutions tend to limit the home loan term to the primary applicant's age of superannuation. It means that young professionals who are in their 20s or early 30s can avail of a loan with a tenure of up to 25 years with no trouble.

2. Your Income Plays an Important Part

The next on the list of a home loan eligibility is your income. Based on the income source, every individual is categorized into three categories—salaried, self-employed and professional. To be eligible for a home loan, you must fall into a steady and regular source of income.

• Salaried Person: If you work for any department of government or a registered private company, you are part of this group. Most banks insist that at the time of application, the applicant should have spent at least one year in the current firm. Payslips, Form 16, bank statements and letter of reference for employers are some of the documents that almost all lenders require.
• Independent Professionals: Individuals who are dentists, architects, management consultants, doctors or freelance workers by profession belong to this category. To check your eligibility in such a case, you'll need to submit bank statements and ITR.
• Self Employed: If you own a business or have another source of revenue, such as rented properties or hold shares, you belong to the category of self-employed. You can certainly apply for a home loan. You'll need to show bank statements tax-related papers to the bank at the time of applying for the loan.

3. Your Loan Tenure has an Impact on the EMI

The longer the tenure, the lower your payable monthly EMI will be. If you think you can't afford to pay higher EMIs, you should opt for longer tenures on loan repayment. However, you should also know that if you choose a longer tenure, you need to pay more interest on the loan amount.
You should always evaluate the tenure and subsequent interest rate options available to you before opting for a home loan. For this purpose, you can use the EMI calculator of various banks. EMI calculator is an excellent way to explain how much money you will have to shell out as part of your monthly payment. Reputable banks like Axis Bank offers a host of benefits so that you can space out your payment over a long loan tenure. Furthermore, you can check your loan eligibility with the help of an EMI calculator.
So, choose the tenure of the home loan carefully as this will affect the amount of EMI you'll have to pay.

4. Unsettled Loans can Damper your Home Loan Eligibility

When applying for a home loan, always make sure that you do not have any unsettled loan. It is because an unsettled loan can be a significant damper on your eligibility. This is also one of the causes why banks recommend you first to use an EMI calculator for your loan amount so that you can keep the EMI to Income Ratio somewhere between 50 or 60 percent. It means leaving the window for future loans or paying out existing loans, if any.

5. Your CIBIL Score Report is Essential

Banks also monitor your credit repayment history from CIBIL (Credit Information Bureau India Limited), which is the regulator for the country and the first credit information office. They keep detailed records of any credit history relationship information between you and lenders/creditors. A negative entry will substantially bring down your eligibility.

Before applying for a home loan, one must understand all the aspects mentioned above to make the right call.