Everyone wants to have their own house one day, but buying a house or building a house is not that easy. Most people need a home loan to buy a house. About 80-90 percent of people build a house by taking a home loan. Now a big question here is what do banks look at while giving home loans? How do they decide who to give the loan at what interest rate? How do they check how much home loan can be given to whom? Let us know what 5 things banks keep in mind.

1- Income is checked first
First of all the bank will look at your income statement, which will include your salary slip, tax return, and bank statement. The bank will see how much your salary is, how much you earn from interest, how much is your rental income and what is your income from other sources. The bank will calculate your total monthly income by adding all these.

2- Then your savings and expenses are checked
After checking the income, the bank will see how much you save and spend from your monthly income. When it is compared with your income, it will be known how much money is left in your hand every month. This savings helps the bank to understand whether you can repay the loan or not and how soon you can repay it. This also makes it easier to estimate the amount of interest that should be charged.

3- How many loans are already taken
Before giving a home loan to anyone, the bank also checks whether you already have any loan or not. If you already have a loan and you are paying its EMI, then the bank also keeps this in mind. The bank tries to understand from this how much are your expenses according to your income.

4- Credit score is also checked
Before giving a home loan to any person, the bank also checks his credit score. This shows how he is regarding credit, that is, whether he pays the loan on time or not. If the credit score of a self-employed person is high, then he can easily get a home loan, but if the credit score is bad then getting a home loan can be difficult. Let us tell you that the credit score remains between 300-900.

5- Age is also a big factor
While giving a home loan, every bank definitely looks at the age of the loan taker. While giving loans to self-employed people, a lot of attention is paid to age. If the age of a self-employed person is less, then it is possible that he can get more home loans and at the same time, he also gets a loan for a longer period. In such a situation, that person does not have much difficulty in repaying his home loan, because the EMI can be small.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.