Creditworthiness of a person depends on credit scores , which is determined as a relatively new concept in India, but has emerged as a highly used concept by lenders. So it’s imperative to focus on one’s credit scores and if necessary , improve it, before planning to buy a house.

What is a credit score? A credit score is a three-digit number used as an indicator of your creditworthiness. It ranges between 300 to 900, with 900 depicting the maximum creditworthiness. The evaluation is performed based on your previous credit repayment data and overall credit management.

We all know that the home buying process begins with a home loan application, as home loan provides you with tax benefits, secured financing, ability to purchase the property of your choice and that too, without exhausting your hard earned savings. Whether you are planning to buy a new property, constructing a house or going for renovation of your old Property, home loans come handy.

But all this can not be done if your credit score is on the lower side. Lenders, nowadays, pay close attention to your credit score before lending money for home buying. So if your credit score is low, the loan can be rejected or approved even if it’s for a smaller amount and, if approved, still fetch a higher rate of interest. Due to which it may directly impact the home buying process, as you will now have to adjust with a small property or cancel the purchase entirely.

Whereas, if the credit score is good, your loan will be approved quickly for the required amount. The interest rates for you will be lower, and the entire home buying process will be swift and hassle-free.