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Will You Get a Home Loan? – Questions to Be Answered

Every common man in India is eager to own a home in one’s lifetime. I think you are not an exception. Owning a home offers a sense of security to Indian families at the age of retirement or they may want to leave their hard earned money for the children in the form of home. Few people plan to go for a home loan during their 30’s where are few opt for the housing finance at the age of 40’s. Surprisingly few try to get a home loan at their 50’s too. Tips to get a home loan at your 50’s will be discussed in my next write-up! Now, let’s know what the lender look in to approve a home loan for you.

Three Factors That Decides Home Loan Approval

Irrespective of the lender you approach to get a house loan, the lender will be interested in asserting your capacity to service the loan comfortably. You should do your minimum research to know your eligibility to avail a loan and factors that are considered by the lender to approve house loan.

Credit score/ credit report

A credit score is a key aspect the lender looks at when they are extending any credit facility to the borrower. The lender will shut the door for you when you have bad credit score. Your credit score will be low if you have to default any loan payment. Take a look at your credit score before you make an effort to reach the lender to get a housing finance. Credit score over 750 points out of 900 is considered as a good score to avail a loan.

Credit remarks in the report hold equal importance as a credit score in availing a home finance. If there are remarks like a settlement or written-off in the report, the lender will be doubtful about your repayment capability. Make sure you correct all these errors in the credit report before apply for the housing loan.


You will have a tough time in getting the housing finance if you salaried employee reached retirement age and business professional at the age of 65. Few may think, mortgaging the property will fetch you the loan at the older age but, the lender is more interested in your regular source of income that will help service the loan rather the price of the pledged property on liquidating. It is advisable to apply for a loan at your 30’s or early 40’s to raise the chances of approval.

Earning history

If you are confident that you will get a home loan in the early career if you are employed in a reputed company with a high-paying salary, you are on the wrong path. The lender looks at your employment history to know your consistency and quantum of the applicant’s income flow. Things act differently if you are employed in permanent positions like government jobs.


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