Apply for a loan with a co-applicant to increase the amount

There are advantages of having a co-applicant in the home loan application. It allows you to avail more loan amount that you would have got with your own income.

 

Home buying is undoubtedly a life time affair and for many it is once in a life time affair. A compromise in buying one’s house is not at all something that is desirable. The situation arises when one zeroes in on a house and then realizes that the amount is way above the budget of oneself. One finds out that the loan amount is not sufficient to buy the dream home that one selected. What are the options available at that situation? The loan amount depends on the income that one has. That cannot be increased in the short run. Then what else? The second option is that you wait for your income to rise. But what is the guarantee that when your income rises the home that you selected will be there and even if it does will the prices remain the same? These factors are there. So what is the solution if someone faces such a situation? Well there is one and that is the loan amount can be increased if there is a co-applicant in your loan application. This will increase the eligibility for you and your co-applicant for a bigger loan amount. The banks have pre-defined terms for the co-applicants to apply for joint home loans. Let us look at the options closely.

Banks lay down some rules for co-application of home loans. Banks do not accept any one who is very close but is not a relation by blood. Even in blood relations there are few restrictions. A co-application by father and mother, or spouse or between brother and sister is allowed.

Read On :Akrama and Sakrama Scheme

Co-application between spouses

As the spouse is the natural inheritor of your property, he or she is the safest and the largely accepted and followed option by many. A co-application of loan by the spouse is often made and granted by the banks as well. In this case if your spouse is an earning member of the family her income will be added to come to the loan eligibility amount. This is surely an advantage. Not only that if there is a woman in the loan application and the property in the name of the joint owners there are tax exemptions also and other benefits by the state governments too. There is thus a definite benefit to have a lady joint applicant and a joint owner of the property.

Father and Son

Father and son can apply for a loan as joint applicants too. In case there are more than one child there are discretions used by the banks and in this case the tenure of the repayment of the loan will be decided keeping in mind the oldest person among the applicants. However the benefit of getting the tax exemptions and other benefits won’t be there in case the genders of both the loan applicants are male.

Daughter and father

If the daughter and father are co-applicants in buying a property the banks will accept the application only if the property is bought in the daughter’s name. It may seem to you that this is a bit weird but in practice it is not. The reason is that in case the father has sons and they may claim the property if it’s in the father’s name. To avoid these future litigations the banks stipulate that in case daughter and father are joint applicants of loan the property should be in father’s name.

Brothers

Two brothers can apply for a joint loan but not brother and sister. The condition for the brothers to jointly apply for the loan is that they should stay in the same address.

Not only in case of joint application does the loan eligibility amount increases allowing you to go for a more amount of home loan but there are tax advantages too which are most important for one to avail in case of buying a home.