The general purpose of taking a home loan is to either buy a flat or house. There are some separate home loans available, when you are trying to purchase a lot for constructing a house later. Some banks are able to proceed further and approve your home loan, which you have used for extension, renovation or even repairing your old place.

Sometimes, selling a property is not that easy as it seems. There are times, when you might have determined to sell the property but not getting good amount for that. Renovating the place can help in increasing the resale value, and you might end up with good response from buyers. For such house renovations, you can easily take help of home loans from bank, whenever the need arises.

Eligibility to check:

Even before you get down for the home loan procedure, you have to determine the total eligibility of the place, which can solely depend on the repaying capacity you have. The repayment capacity is solely based on the surplus or monthly disposal amount. This amount is based on the total monthly income or the surplus, which is less than monthly expenses. On the other hand, there are some other factors, which help in determining the eligibility of your home loan. Some such examples are liabilities, assets, income stability and more.

You need to show proof:

The banks are not going to believe your word of mouth for approving the loan request. You need to hold a good credit score and prove your eligibility to repay the mount with interest rate in full, and right on time. For that, you have to show you employment ID, the monthly slip of the last three months, bank account statements and more. That helps in highlighting your characteristics well and gets the loan approved by banks.