Many of us get nervous when it comes the time for us to approach a bank or some other lending institute in enquire as to whether or not we qualify for a loan to buy a house. A house is probably the most important thing that we will ever buy in our lives and so of course, the opportunity to buy one or not, will in a significant stepping stone in our lives. We will probably have been dreaming of the day we could move out from under our parent’s roof or perhaps just want to shed the burden of paying rent with no long term benefit resulting from the expense. Regardless of the circumstances though, the chances are that it is something that we will have been looking forward to for quite some time. The nervousness then, is quite understandable as, a pleasant result will be a joy rarely experienced but, a refusal or denial will be staggering, a major jolt to our confidence and our dreams.
Fortunately today, there is something that can take at least some of that uncertainty and nervousness away and that is an online calculator which will evaluate your chances of meeting success at your meeting for a loan. Loan eligibility calculator is a device which, once you place in it your personal details of income, plus the cost of the house you are seeking to buy, will use criteria very similar to those that a lending institution will, to evaluate your eligibility.
Although each lending establishment will have slightly different criteria that they employ to decide on a home buyer’s eligibility for a loan, they are all very similar and so if the calculator assess you as being eligible, one of them will grant you a loan even if it isn’t the first one you try. This affords you an extra touch of confidence when making your request and perhaps gives you hope that not all is lost if refused on the first attempt at getting the required loan.
Obviously some of the criteria which is always taken into account is the price of the house, the amount of the loan being requested and the size of your income. Firstly it is important to note that no lending institute is likely to lend you more than 85% of the value of the house you are hoping to buy and they will not take your word for it, they will check on the properties worth. Whilst taking into account your full salary, they will be primarily interested in what they call PDI (personal Disposable Income). This is the result of adding up all your total income and then subtracting from that, essential out goings such as taxes. It is that DPI which they will use in determining your capability of repaying the loan. Another factor that they will all take into consideration is your history in regards to paying back other loans you may have had in the past, which is known as your credit score.