There is a lot of difference between applying for unsecured and secured loans. When we talk about secured loans, we think of quick home loans offered by many lenders. Everyone has a dream of getting their own house and without putting all the savings at once there are housing loans in Hyderabad available to all the individuals who are planning to buy immediately.
To know how to get the loans approved, you need to do a few things.
1. Knowing the credit score: The credit score is the decider for the loans to get approved by the lender. Many borrowers assume that their credit score is fine to apply for a loan and they apply without even checking that. If the score is less, then there are fewer chances for the loan to get approved as only a few lenders offer loans for borrowers who have a low or poor credit score. Credit scores have a major impact on loan approvals as many lenders require a minimum of 620 credit scores and if the borrowers fail to fulfill this scoring rate, lenders have all the right to deny the loan application. Knowing the credit score before applying for the loan is better rather than applying right away and then getting rejected later.
2. Save the cash for the down payment: There is no home loan given to the borrower without them doing the down payment first. Save some money for the initial down payment, which has to be done to the lender at the time of taking the loan or the amount will be deducted from the loan amount itself and you will receive the money after the down payment is removed. Not just down-payment there will be other costs involved as well like for inspecting the home, application fee, processing fee, etc. So, there should be some extra cash saved for the extra costs.
3. Stable job: If you are a person who has a stable job and regular income, then the probability to get the loan approved is high. A frequent change in jobs will show the lender how instable you are in the job and it gives a feeling that you might miss the payments because there is no regular income. So, any changes in the employment status will stop the whole loan process.
4. Clear off other debts: Debts are a liability that will be carried for a lifetime if it is not cleared on time. Already having other debts and then applying for a home loan will not only be a burden but also the chances of getting the loan will also be reduced. The lender will not accept the applications who have other loans because they think that the borrower might not be able to pay all the amounts at once. Clearing off the debts will put you one step ahead in approving the loan.
5. Know what you can afford: Budget planning will save thousands of rupees without having to feel the burden of paying huge amounts of money to the lender. If you wanted to purchase a house beyond your affordability, then it will be very difficult to make the payment for the loan amount. You need to know the expenses and should be smart enough to take a house only which you can afford.