10 Dos and Don’t When Applying for a Home Loan Online


For many, buying a home is a lifelong dream- a blend of financial and emotional value, a haven for relaxation and cherished family moments. It’s a worthy investment, a legacy for future generations. However, the significant hurdle is the soaring real estate prices. Currently, ready-to-move-in homes in cities range from 40 to 50 lakhs and can go up to crores, influenced by factors like location, amenities, and features.

Let’s see some Dos and Don’ts while applying for online home loan approval in this article.

Dos While Applying for Online Home Loan Approval

1. Credit Score Wisdom

Maintain a good credit score above 750 for a successful home loan application. Pay your credit cards and existing loans on time to keep your credit score in check.

2. Do choose a home loan that you can afford 

To avoid this trap, Don’t borrow the maximum offered; stick to an amount you can manage. Set an EMI within your monthly budget constraints. Calculate overall monthly expenses; keep home loan EMI below 20-25% of income.

Utilize a home loan EMI calculator for an EMI that aligns with your budget for home loan rates.

3. Do your research Research

There are various lenders for your home loan. Understand their interest home loan rates, terms, and fees. Thoroughly examine different loan options to secure the best deal that suits your needs.

4. fill out the online application correctly

When applying for a home loan, provide all necessary financial details accurately. Keeping it real ensures a smoother approval process, avoiding delays or rejections.

5. Boost your Down Payment

Consider increasing your down payment for a home loan rate. A substantial initial payment not only impresses the lender but also enhances your chances of approval, often leading to lower interest rates.

Don’ts While Applying for Online Home Loan Approval

1. Don’t go for a long tenure

Although home loans can stretch up to 30 years, it’s wise to finish them sooner. The longer the tenure, the more interest you pay. As the tenure increases, so does the total interest. Opt for a shorter tenure with a manageable EMI to cut down the overall loan burden. Use a home loan EMI calculator to experiment with tenures and find the right EMI that fits your budget.

2. Closing Cost Caution

Don’t ignore closing fees when entering a new loan. These charges can sneak up on you, potentially causing financial challenges and approval delays. Factor in closing costs for a smoother online home loan journey.

Keep an eye on closing costs to ensure they’re manageable. Skipping this step might lead to financial hurdles and delay your dream house plans. Factor in closing expenses for a smoother loan ride.

3. Don’t change jobs before getting a home loan

Lenders love a stable job and steady income when approving your online home loan. Stick with your current job for a smoother home-buying journey – changing right before might lead to loan denial

4. Joint Home Loan Benefits

Consider a joint home loan for better approval odds. If your co-applicant has a good credit score and income, it’s like a financial tag team. Adding a female co-applicant can bring extra benefits, including concessions on interest rates. Team up for a smarter deal on your dream home.

5. Avoid opening new credit cards or taking other loans right before getting a home loan

Avoid getting a new credit card during an Online Home Loan application to prevent credit score dips and potential rejection. Check deals, review your credit score, and read details carefully for a stress-free process, ensuring the best home loan for your situation. 


By adhering to these 10 dos and don’ts, you enhance your likelihood of locking in a home loan swiftly and at the most favourable rate. Save this page for easy reference, and consult these guidelines when navigating the online home loan application process.

FAQs About Online Home Loan

Q1. How does the lender determine the amount of home loan I am eligible for?

Unlocking the door to your dream home depends on the lender’s magic formula, considering two crucial elements: your repayment prowess showcased by your credit score and history and the melody of your income. This financial symphony isn’t a solo act – your age, partner’s income, assets, debts, job history, and savings story all take a bow in this grand performance. It’s not just a loan application; it’s a tale told through.

Q2. How to apply for a home loan online? 

Embark on your journey to homeownership by choosing the lender that suits your preferences. Once you’ve made your selection, dive into the user-friendly waters of the online home loan application. Take a moment to gather the necessary documents, then hit submit. As your digital voyage unfolds, jot down the reference number – your virtual key to progress.

Now, here comes the anticipation – within a couple of working days, expect a call from the bank. This isn’t just any call; it’s the gateway to discussing the nitty-gritty of your loan terms and conditions. It’s the part where the financial pieces of the puzzle start to align. So, get ready for that call, and let the exciting chapter of your home loan story unfold.

Q3. Why was my home loan rejected despite having a decent salary package?

Several factors could be at play: a less-than-stellar credit score, multiple ongoing home loans, or perhaps not aligned with the lender’s eligibility criteria. Dive into the why behind the rejection and craft a strategy to overcome it. It’s not just about understanding the roadblock; it’s about paving the way to turn rejection into acceptance.

Q4. How much time does it typically take for the home loan amount to be disbursed?

The timeline dances to a different rhythm with each lender. Typically, expect the loan amount to gracefully waltz into your account within approximately 7 to 15 working days after the approval and processing of the required documents. It’s the sweet spot where paperwork meets progress, and your dream home edges closer to reality.

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