It is impossible for a first-time homebuyer to pay the whole amount at a time. Fortunately, there is a downpayment system where the buyer needs to pay 10 to 20% of the apartment price and the rest could be managed from a home loan. A homebuyer’s credit score plays an important role which determining the buyer’s creditworthiness. A bank or any other financial institution will measure the credit score of an individual which will directly impact the amount of loan sanctioned and it will also help to determine the rate of interest that will be payable on the loan amount. If the buyer has a low credit score, banks and financial institutions will not acknowledge the loan application.
What is a credit score?
A credit score is usually a 3 digit number that symbolizes the creditworthiness of a loan applicant. A credit score ranges between 300 to 900. Every financial institution whether private or government will check the credit score while applying for a loan. This score is prepared by TransUnion CIBIL, one of the four credit bureaus functioning in India (others bureaus include Experian, CRIF High Mark, and Equifax).
What is a good credit score?
According to the credit information company Tran Union CIBIL’s website, the closer the candidate’s score is to 900, the higher the chances of the loan approval. Basically, a credit score of 700 is considered to be a good score.
How to improve your credit score?
Buying a home is a lot about money management. If you are planning to buy a house with bank credit then you should keep your IT returns, salary slips all intact. You even need to choose your job accordingly because your salary will be the deciding bar of how much loan you are going to get from a financial institution. While this is the deciding factor of your loan, you also need to make your investment worth the effort. If you’re a first-time homebuyer, unsure of which property to invest in, we vouch for residential properties by Aparna Constructions. Their homes are worth every effort and every penny you spend!