Looking for a loan to buy or book a new home or property? If so, you are probably asking yourself whether you should take a personal loan. The answer to that is of course yes. But there is an even more pressing question: Can you take a home loan after taking a personal loan?
The answer to that is also yes! In fact, here is good news: you can take any amount of loans as long as you can repay them simultaneously. All or most banks support this facility.
The fact is that getting a personal loan along with a home loan, which is again entirely possible, can be very helpful. Here’s why you should get the two together and what you can do with it. You can use the personal loan to pay 20% of the home loan’s down payment. Likewise, you can use the loan to renovate, buy modern furniture, upgrade your home, and of course buy the property.
Here is something you want to remember if you want to go do this dual loan path. Understand that you still need to show that you have the capacity to repay. You have to prove to the bank or to the lender that you can tackle both the loans simultaneously.
To get enough funding for both the loans, here are the four options you need to consider.
Banks and lenders pay special attention to this factor. You need to have a strong credit score to get the loans, and especially two credit lines at the same time. The higher your credit score is, the more you can borrow. So don’t neglect your credit score. Take your time and do all that is necessary to increase the score, unless of course you need the funds immediately. Before you apply, make sure the score is up to the mark. You may think 600 is good enough, but your lender may want 750. Get to that mark before applying, or else your credit score may suffer as a result of loan application cancellation. By the way, with a high score, you can get really low interest rates!
When you co-apply, you show the lender that no matter what, you will end up repaying the loan on time. Even if you cannot, your co-applicant will. This is an added security layer for the banks, and this is what makes it likely for you to get the loans.
Lenders shall see how much you earn and how much you spend on debt repayments. Based on your earnings and debt burden, you’ll get the loan.
You want to manage both the loans simultaneously. It makes a lot of difference if you get a personal loan with flexible terms.
To conclude, here are the things you can do to increase your chances. Additionally, you can also get your loan pre-approved.