How to be eligible for home mortgage

January 27, 2013  //  Posted by: Financial advisor  //  Category: Loans

home mortgage, mortgageThere are different types of loans, of which home mortgage loan is famous and common among customers who have their own home. For all loans eligibility is important to get the loan approved.

Here are some facts about the eligibility for home mortgage loan…

• Like all loans, the basic loan eligibility is calculated using your annual pay and your repayment capacity based on that. Normally your repayment should not cross 28% of your annual income. If you already have any debt, then the percentage will go even lower. This is also called as PITI ratio.
• If the loan offered is more than you require, don’t go for it. It’ll increase your burden on regular income. Remember, more you get as a loan, more the lender earns from you as interest.
• If you have a co-signor, this improves the eligibility of the home mortgage loan.
• Verify and calculate all your present debts, before going for a mortgage loan.

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