Are you ready to buy your dream home? If yes, this is the best time to plan your finances and head towards the right direction. Since home loans are one of the most preferred choice amongst the borrowers, it is best to calculate your monthly Equated Monthly Instalments (EMIs) before applying for a home loan.
To simplify your calculations for home loan EMIs, there is a simple solution – a home loan eligibility calculator. This invaluable tool helps you determine an accurate payable amount every month.
What is a Home Loan Eligibility Calculator?
A home loan eligibility calculator is a tool provided by most banks and financial institutions to estimate how much a borrower can borrow for a home loan as per their financial profile. Considering various factors such as the income, expenses, existing loan obligations, and credit score, lenders like Tata Capital offer loans of an approximate amount that borrowers are eligible for.
Why Should You Use a Home Loan Eligibility Calculator?
Home loan eligibility calculator is an easy-to-use tool that brings multiple benefits to the table. It gives borrowers the right direction to move ahead with your financial planning. Here is why you should use it:
1. Clarity on the Payable Amount
Using a home loan eligibility calculator gives you a clear picture of your borrowing capacity. It helps you set realistic expectations and save time searching for properties as per your financial requirements.
2. Saves Time to Move Patiently
Sometimes, house hunting can be time-consuming. Knowing your loan eligibility for borrowing a home loan with a home loan eligibility calculator allows you to narrow down your choices. This saves you time and effort to find the best property.
3. Better Financial Planning
Understanding your borrowing power lets you plan your finances more effectively. With accurate planning using a home loan eligibility calculator, you can assess how much of your savings you need to allocate for down payment and how much you can repay as EMI without much financial burden.
Ways to Use a Home Loan Eligibility Calculator
Using a home loan eligibility calculator is a breeze but requires some careful considerations, as listed here:
Be Sure About Your Financial Information
Before you start using a home loan eligibility calculator, you must have key financial information, including:
- accurate income (from all sources),
- expenses (utility bills, groceries, insurance, and other),
- existing loan details (if any), and credit score.
Input Accurate Figures to Avoid Errors
Use a home loan calculator provided by a reputable bank or financial institution. Most of these tools are easily accessible and user-friendly. You have to input key information such as principal amount, loan tenure, and interest rate you choose.
Get Accurate Results for Loan Management
After you input all the necessary information, this calculator provides you with an estimate of your home loan amount. This represents the maximum loan amount you can borrow based on the data you provided.
Fine-Tune Your Loan Amount
Now that you have an initial estimate, you can try estimations on different loan amounts based on your preferences. You may choose a shorter or longer loan tenure to adjust your EMI amount. Borrowers should be aware that a longer tenure may reduce the EMI but increase the overall interest paid. On the contrary, a shorter tenure may result in higher EMIs but lower interest costs.
Plan Your Budget with Home Loan Eligibility Calculator!
A home loan eligibility calculator is an invaluable tool in your journey to homeownership. It empowers you with the knowledge of your borrowing capacity, allowing you to make informed decisions. With accurate calculations, you can increase your chances of finding the best property. Remember that while the calculator provides a good estimate, the final loan approval process will involve a more detailed assessment by the lender.
Before applying for a home loan, tick off the checklist to ensure that you are prepared with all the necessary documents. This accelerates the loan approval process.
If you choose Tata Capital as your reliable partner for home loan, the experts carefully assess your documents and initiate the process with flexible terms and conditions. Their team also guides you through the whole process and helps you choose the type of loan that meets your financial requirements.
Use an EMI calculator and step ahead with better financial planning to apply for a home loan.