How do banks approve home loans?

How do banks approve home loans?

Credit history – Your credit history is what determines your credit score, and your credit score is one of the major criteria that banks look at before approving your home loan. The bank processes your income with regard to your loan amount and accesses whether you will be able to pay off the loan on time.

How much will I get approved for home loan?

To determine how much house you can afford, most financial advisers agree that people should spend no more than 28 percent of their gross monthly income on housing expenses and no more than 36 percent on total debt — that includes housing as well as things like student loans, car expenses, and credit card payments.

How much mortgage can I get on 25000 salary?

25,000 and the value of house you are buying is Rs. 40 lakh, then at interest rate of 7.35% offered by SBI, the loan amount that you will be eligible for (assuming you have no other EMI's to pay) would be Rs. 40.81 Lakh to Rs. 47.17 Lakh depending on your age.

How much home loan can I get on 30000 salary?

If your monthly income is 30000 INR per month, the maximum home loan you can avail is 60 time your monthly income. However, that is not the only factor that determines the loan amount you are eligible for. There are other factors such as your debt to income ratio, the city you want to buy your property in, etc.

How much mortgage can I get on 45000 salary?

It depends on your life style amd how much you spend out of the 45000/- salary. As a rule of thumb the financial institutions will consider 40–50% of your salary as your EMI payability (the amount you can pay as EMI) and grant you a loan of 20–25 lakhs (Home Loan) for a period of 20–25 years.