How to Qualify for a Home Loan – A Complete Guide for First-Time Buyers

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How to Qualify for a Home Loan – A Complete Guide for First-Time Buyers

4 min 18 Aug 2025
Highlights:
  • Understanding the Basics – What Lenders Look For
  • The Role of Your CIBIL Score in Home Loan Approval
  • How to Improve Home Loan Eligibility – Practical Steps
  • Checklist of Home Loan Documents You’ll Need
  • The Importance of a Clear Property Profile

Purchasing a home, whether it is your first or a step up to a larger property, is an important milestone. Before moving forward with property inspections or completing application forms, it is essential to determine if you are eligible for a Home Loan. A clear understanding of the Home Loan eligibility requirements, careful monitoring of your CIBIL score for a Home Loan, and timely action to improve Home Loan eligibility can significantly enhance the likelihood of a seamless approval process. 

Understanding the Basics – What Lenders Look For

When you apply for a Home Loan, the lender is essentially checking two things: your ability to repay and the property status. The first part is all about you—your income, credit profile, employment stability, and existing liabilities. The second is about the property itself—clear legal title, proper approvals, and valuation. 

Knowing the Home Loan eligibility requirements up front helps you prepare better. You need to meet the following criteria to apply for a Home Loan with Bajaj Housing Finance: 

Salaried Individuals

  • Must be an Indian citizen (NRIs are also eligible) 

  • Should be between 23 and 67 years** of age 

  • Requires a minimum of 3 years of work experience 

Self-Employed Individuals

  • Must be an Indian resident 

  • Should be between 23 and 70 years** of age 

  • Requires at least 3 years of business vintage  

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile. 

The Role of Your CIBIL Score in Home Loan Approval

Your credit score is like a numerical snapshot of your borrowing history. It tells the lender how you’ve managed loans and credit in the past. For most lenders, a CIBIL score of 750 or above is considered strong and can help you secure better terms. 

That’s why it’s worth checking your score before applying; if it’s lower than the ideal score, you can take steps to improve it before approaching a lender. 

How to Improve Home Loan Eligibility – Practical Steps

Improving your eligibility isn’t just about earning more—it’s about presenting a well-rounded financial profile. Here are some ways to do that: 

1. Reduce existing debts – If you’re already paying EMIs for other loans, consider closing smaller debts first. This lowers your debt-to-income ratio, which lenders assess carefully. 

2. Build a strong credit history – Make timely payments on all loans and credit cards. Even small defaults can reduce your credit score. 

3. Add a co-applicant – Applying jointly with a spouse or family member who has a stable income can increase the eligible loan amount. 

Checklist of Home Loan Documents You’ll Need</h2> 

While exact requirements may vary, here’s a list of documents*** required for a Home Loan: 

  • Proof of identity and address (KYC documents), such as Aadhaar Card or Voter’s ID 
  • PAN Card or Form 60 (mandatory) 
  • Salary slips/Form 16 for salaried applicants/ITR, and profit & loss statements for self-employed applicants. 
  • Bank statements for the last 6 months 
  • Property documents with a clear legal title 

***This list is indicative.  

Also Read: List of Documents Required for Home Loan 

The Importance of a Clear Property Profile

The property you plan to purchase must also pass the lender’s checks. This means: 

  • Approved building plans 
  • No legal disputes 
  • Proper registration and documentation 

The more you understand the Home Loan eligibility requirements, the better you can prepare. And with the right approach, you’ll find that qualifying for a Home Loan is easy.  

Qualifying for a Home Loan: FAQs

Qualifying for a Home Loan: FAQs

Most lenders prefer a CIBIL score of 750 or higher for smooth approval and better terms.

Yes, to apply for a Home Loan, a self-employed applicant must be an Indian resident, between 23 and 70 years** of age, and have at least 3 years of business continuity.

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

You can improve your Home Loan eligibility by reducing existing debts, maintaining timely payments to build a strong credit history, and considering applying jointly with a stable-income co-applicant.

Yes, multiple loans and credit card dues can increase your debt-to-income ratio. This may reduce the eligible loan amount. Clearing smaller debts first can help you improve your eligibility. 

Yes, adding a co-applicant with a steady income can increase your approved loan amount and improve approval chances.

Blog-Intro-Disclaimer

DISCLAIMER:

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.

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