Benefits of Using a Home Loan Eligibility Calculator

Modern times call for things to be done differently and people can nowadays compare home loans online before finalizing on a particular bank of their choice. Many financial services, companies and banks have started offering home loan calculators on their websites. This step has proven to be very beneficial for loan applicants.

Looking for a new home might be exciting, however, for first time buyers the calculation of home loans can be mind boggling and since it involves large amounts of money, you can never be sure whom to trust.

How does a home loan eligibility calculator work?

A home loan eligibility calculator takes into account various factors like age, monthly income, available income, any other EMIs, credit history and employment status to calculate a suitable loan amount, which works for you and is feasible by the bank. The loan calculator will help you in estimating the amount that is required to take a loan or in some cases, choose an alternate property with a price, which falls under your loan criteria.

How can a housing loan eligibility calculator help me search for a new home?

Keeping your focus on the data churned out by the calculator, you can zero in on a home which fits in your budget. Determining a budget for your new home can help in saving time and effort as well as can help you get your new home a lot sooner than you might expect.

The benefit of using a home loan eligibility calculator is that you will get to know exactly how much amount you are eligible for and what tenure will you be granted a loan for. Both these factors are highly important in calculating your monthly expenditure including an EMI every month.

The eligibility calculator is very simple to use, which is another strong point of this tool. You need to input a few simple details such as gross monthly income, your age, any other recurring EMIs and you are all set. You can also select loan tenure and tweak the loan percentage, which you think is prevailing in the market. The calculator will take your inputs and calculate the loan amount, which you are entitled to. It will also measure the monthly installment, which you will have to shell out. Some calculators also are intuitive enough to ask how much down payment you will be paying on the home front, so that they can help you in calculating the exact amount for your eligibility. Employment status and service history for salaried professionals are also taken into account by some calculators, however they tend to make the process cumbersome for most users.