How does debt impact my ability to buy a house?

Debt can impact your ability to buy a house in India in several ways:

1. Credit score: Your credit score plays a crucial role in determining your eligibility for a home loan and the interest rate you'll be charged. If you have high levels of debt or a poor payment history, it could negatively impact your credit score and make it more difficult to qualify for a home loan.

2. Debttoincome ratio: Lenders also look at your debttoincome ratio, which is the amount of debt you have compared to your income. If your debttoincome ratio is too high, lenders may see you as a risky borrower and either deny your loan application or offer you less favorable terms.

3. Down payment: If you're carrying a lot of debt, you may not have enough money saved up for a down payment on a house. A larger down payment can make your loan application more attractive to lenders and also lower your monthly mortgage payments.

4. Affordability: Finally, carrying too much debt can impact your overall ability to afford a house. If you're struggling to make payments on your existing debt, taking on a large mortgage payment could put you in a difficult financial situation.

It's important to prioritize paying off highinterest debt and improving your credit score before applying for a home loan in India. This can increase your chances of getting approved and help you get better interest rates and loan terms. Additionally, be sure to research different loan options and work with a reputable lender to ensure you're getting the best deal possible.