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  • 4 Financial Factors That Decide Your Home Buying Capacity
    January 3, 2018

    4 Financial Factors That Decide Your Home Buying Capacity

    Planning for buying a house involves close consideration of various factors along with an analysis of your financial position. This will help ascertain your capacity as a home buyer to obtain a good real estate deal and also helps assists in getting prospective benefits regarding the same.

    Listed below are 4 financial factors that help decide your home buying capacity.

    1. Credit score

    Credit score is imperative in deciding your eligibility for availing a home loan. It proves your ability to repay the loan before the bank. A credit score above 750 is considered ideal for loan approval and some of the factors that influence one’s credit score are payment history, previous debts, credit history, credit mix and new credit.

    2. Down payment

    Mortgage eligibility is also determined on the basis of the amount of cash paid during property purchase. It is advised to utilize an ideal 20 percent of total amount as down payment to improve overall buying ability while also reducing the future liability.

    3. Debt-to-income ratio

    It is the financial calculation that decides your ability to pay off the mortgage amount in addition to other outstanding arrears. In the two types of debt-to-income ratio calculated, one involves the percentage of income that is utilized for housing expenses such as EMIs and insurances and the other includes the monthly debit liabilities such as credit card bills, car and student loans, etc.

    4. Proof of asset

    In order to confirm your credibility and to ensure your repaying capacity, banks require documents such as tax returns, pay slips, income proofs, employment confirmation, proof of funds and official IDs. These are considered as asset proofs which evaluate your financial stability.

    Ladder Kerala, one of the reputed builders in kozhikode, Kerala  of luxury flats and apartments in Calicut for sale,  offers premium living spaces in their flagship apartment project Ladder Mankav Greens. A prospective home buyer is offered the choice of owning luxury apartments in the project by providing an amazing interest rate of 4.99 percent for home loans.