Home Loan Approval: Everything You Need to Know

When you start looking for a house, the first question is whether the bank will say yes to your loan request. Home Loan Approval is the process a lender follows to decide if you qualify for a mortgage in India. It includes checking your income, credit history, and the property you want to buy. Also known as home loan sanction, it sets the stage for the rest of your home‑buying journey.

One of the biggest factors in that decision is your Credit Score, a numeric record of how you’ve handled credit in the past. Lenders use it to predict future behavior, so a score above 750 usually speeds up approval, while a lower score can add extra paperwork or higher interest. In simple terms, home loan approval requires credit score verification, making it the first gate you need to clear.

Another key piece is the Down Payment. This is the cash you put down upfront, typically 10‑20% of the property's price. A larger down payment lowers the loan amount, improves your loan‑to‑value (LTV) ratio, and often leads to better interest rates. In practice, the down payment influences loan eligibility because it shows the lender you have skin in the game.

The Loan‑to‑Value Ratio (LTV) measures how much you’re borrowing against the property's value. An LTV of 80% means you’re borrowing 80% and have paid 20% yourself. Banks set maximum LTV limits, and staying below them can reduce risk and unlock lower rates. Thus, LTV affects interest rates and overall loan cost, directly linking back to home loan approval.

Beyond these numbers, lenders examine proof of income, employment stability, and property documents. Salary slips, tax returns, and bank statements act as evidence that you can repay. Property paperwork—like title deed, and approved building plan—confirms the asset’s legal standing. When all these pieces line up, the approval process moves from “under review” to “sanctioned”.

Many borrowers wonder if pre‑approval helps. It does: a pre‑approval letter shows sellers you’re serious and gives you a clear budget. It also lets you spot any credit or documentation issues early, so you can fix them before you fall in love with a house.

Finally, remember that approval isn’t the end. After you get the green light, you’ll still need to sign the loan agreement, pay processing fees, and set up EMI payments. Understanding each step beforehand helps you avoid surprises and keeps your home‑buying timeline on track.

Below you’ll discover articles that break down each of these topics—how to boost your credit score, calculate the perfect down payment, and master LTV ratios—so you can walk into the bank with confidence and get that loan approved faster.