How Marriage and Being Single Impacts your Home Loan Application
Lenders or banks are not authorized to reject any loan application based on the marital status. So, you can’t get rejected for a mortgage loan or home loan because you are married or single. However, this doesn’t mean that relationship status can’t affect the ability to get a home loan in India. Relationship status is a factor which is considered by the lenders or banks while approving a loan application. However, specific relationship status may not directly affect your ability to get a home loan, but different statuses can impact certain financial factors which banks consider to determine whether or not the applicant qualifies for a home loan.
For Married Couple House Loan, the credit score or CIBIL of the spouse is checked and this can hurt the chance to qualify for a home loan in India. Similarly, if you are single the income and employment of the applicant would be checked to determine whether or not you can make the monthly repayment against the home loan and based on this the application is rejected or approved. Below is how being married and single can worsen or improve your chances to qualify for a home loan in India.
Married couples have the flexibility when it is right time to apply for a house loan in India. If the couple apply for the house loan together, they both can use their incomes and this increases the chance of getting approval from the lenders for Married Couple House Loan. But married couples do have some issues while applying for house loan. Banks and lenders greatly rely on when determining who qualifies for house loan and what would be the interest rate.
CIBIL score is highly considered today in India when qualifying married couples for house loan. When you and your spouse apply for a house loan together, the bank always consider the score and compare the score of both the applicants. The score of spouse must be above 750 and the main applicant must have score above 800 to get qualify for house loan. Based on the CIBIL score, the rate of interest is determined by the lenders.
Due to this factor, you are required to determine whether or not it makes sense for both of you to apply for the house loan together. If you see that the CIBIL score is not good of your spouse, then it is better not to apply for the house loan together. But lenders will assess the incomes of both the partner to determine the amount of loan lender can loan you. So, plan accordingly for Married Couple House Loan and check if applying jointly is beneficial or you need to apply it separately to have better chance of approval.
Being single doesn’t mean that you can’t apply for a house loan in India. As long as you are having enough steady income you can easily qualify for house loan in India. Unlike married couples, you are the single applicant and hence you don’t have the option to tap another borrower’s income in order to increase your chance of qualifying for the house loan.
But, single applicants do have other options to apply for a house loan in India. You have to produce a co-signer and it can be relative or close friend who will help you to meet your financial requirements. The co-signer is required for single applicants of house loan and the co-signer agrees to make all the payments on behalf of the applicants if they defaults or can’t make the mortgage payments. This alleviates the concerns of the banks as they are assured that the loan amount would be reimbursed even if the applicant is not capable of making the repayments later.
However, you need to be careful when working with co-signer because when you default or miss any payment against your loan, the CIBIL score of your co-signer would also be hurt along with yours.
So, these were some of the factors that may impact your loan application when you are married or single. When you plan to buy Property for Sale in India, relationship status doesn’t matter a lot. But when applying for a house loan to buy the property it do matters and you need to plan carefully.