According to the demand-supply theory, housing loans offered by various financial institutions are in rise in the last few decades. Though the real estate industry having some recession in a short period the demand-supply ratio is well balanced and in fact more homes are available now everywhere. This situation makes easy for the buyers as well as the renters as they have innumerable choice in front of them. Before going to the subject matter, let us understand few basics. The culture of living in joint family has been saturating till now, and all the people in families started to set up their life in individual homes. The increasing rate of nuclear families has raised the need for an individual home drastically. In the earlier days people who like to build a home had waited for a long period to get their retirement funds but that is no longer the situation in current scenario. The aspect your credit score has come into play in deciding the credibility as well as the repayment potential of the buyers. Many agencies, as well as bankers, offer loans based on the credit ratings which are calculated through a complex formula by considering various factors of the individuals. Nowadays, buyer’s credit score has been used as a useful reference for the money lenders who offer home loans.

Avail home loans even with marginal credit scores 

One of the main constituent of lending loan is the (Equated Monthly Installment) EMI. It is determined based on the principal amount that refers to the actual money borrowed, Rate of interest, Loan tenure and method of computation. It includes Annual reducing method, monthly reducing loans and daily reducing loans. It can be calculated by either on floating rate or a fixed rate of interest. EMIs are fixed according to the rise and fall in the income of the borrower that is said as the Step up and step down EMI. If all else fails bad credit isn’t too hard to clear up. Contact the three credit bureaus and request a copy of your credit report and credit score. Look for errors and any misinformation and immediately dispute the information. If you are delinquent on any accounts, contact their customer service and find out what you can do to get up-to-date on your payments. Many times if you explain why you were behind they will work with you to find a payment plan that suits your needs. If you aren’t for sure where to begin on your own, contact a debt specialist to help you set up a payment plan and budget that fits your lifestyle.