When you decide to buy a house, it is like achieving a milestone. But your savings solely cannot land you with the best deal in the market. You would need to apply for a home loan. Now, the house loan interest rates are low. Besides, a good credit score and repayment capacity could land you with the best and lowest rates. But before you decide to apply for one, there are some things you should include:

The loan amount approved depends on your home loan eligibility, like income, credit score, and existing liabilities.

You need to fix other aspects such as property price which you consider buying.

The house loan is a long-term commitment as you pay EMIs towards them for almost 25 to 30 years. So, you need to be clear about the mentioned parameters.

The following thumb rules also make it easier before you apply for home loan online:

Be aware of the budget of your house

Deciding on the accurate budget of your home you choose to buy is one of the basic rules you need to follow while buying it. For this purpose, analyse your affordability and then decide the budget. Doing so avoid future financial crunches and keeps you financially sound.

Follow 35/50 rule

While applying for a housing loan, lenders ask for your existing liabilities and financial commitments, including your current borrowings such as personal loans, vehicle loans, etc. Lenders generally ask this because they do not want to lend an amount where your EMIs will exceed more than 40% of your income.

It is advisable to opt for loans whose home loan EMI does not exceed 40% salary, while the total EMI percentage should not be more than 50% of your monthly income. Following this rule makes you feel less burdened and allows you to save for other goals.

Credit scores are an essential check
Your credit check is the most important things you should follow while applying for a home loan in India. If you have a decent score, it becomes easier to qualify for the loan, while those whose score is below 700 face difficulties. Lenders offer lower interest rates on loans to those who meet the ratings. This means holding a decent credit profile helps you land with the best deals.

If you do not have the desired credit score, wait for some months, apply for a small amount of personal loan, pay its EMIs, and when the credit score gets better, applying a loan for buying your house.

Do your math
Not only for housing loans, doing your calculations and knowing your estimated EMIs is imperative for any loan. This is because doing the correct math helps you analyse your affordability and helps plan your finances better. Using the home loan EMI calculator, you can efficiently do so.