If there is a co-owner of the house and he is applying for home loan along with the borrower of the loan then he is called as co-applicant. This kind of loan disbursal is very common in housing finance companies which allow some people who are related to you to be the co-applicant.
Use of getting the co-applicant loans
There are two elements when you apply for the loans – there is a primary applicant and an additional person. Reason behind the inclusion of these two persons is to nullify the possibility of loan rejection in case, the onus falls on primary applicant. To purchase the property, both the borrowers are going to have an equal ownership on that. Mostly, it is the spouses who become the primary applicant and the additional person for getting loan.
Who is eligible for co-applicant loans?
Generally the eligibility for this form of eligibility for getting the medsøker lån is combined one. Check out the entities who qualify as co-applicants: Clubbing income of co-applicants
- Husband and wife
- Parent and son but only if they have a son
- Parent and daughter, if she is the only child of the parents
- Two brother who are blood-related and if they stay together and intend to stay in the new property
- Brother and sister are not eligible
- Two sisters are not eligible
- Minor child is kept out of this purview
How a lender estimates the co-applicant Loans
When it comes to the lender, the debt is examined on some specific set of standards which are as follows:
- Examining the credit and debit scores of both the applicants involved
- The lender will weigh is the loan should be extended or not
There is a smooth transition in which the applicants become co-borrower, each of the entity then becomes responsible for paying back the loan.
Who is liable for payment in Co-applicant Loans?
When the primary borrower of the loan dies then co-applicant becomes liable for loan repayment. Even if there is accidental cover provided, one needs to take a legal advice or get the proper information from the bank or the housing finance unit. Taking these precautions can save you from the financial burden at some later stage.
So first things first, you need to understand the specific terminologies regarding the medsøker lån and is it the right financial vehicle to avail the desired amount of loan that you seek for.
