We all desire to purchase our dream home someday. Well, with home loans, it has become easier to do so. The home loan application process does not have to be daunting with our step-by-step guide to the house loan process.
While there may be minor variances from one lender to the next, the fundamental approach outlined below will be followed by all institutions. Without complications, you can follow the steps outlined below to ensure your place loan application goes smoothly.
Fill Out the Home Loan Application Form
Are you looking for a home loan in India? Every prospective borrower must complete a home loan application form first. You must enter your personal information and information about your income, employment, current liabilities, assets, education, etc. The house loan application form is available both online and offline.
Submit the Form with the Required Home Loan Documents
After completing the property loan application form, you need to attach supporting documentation and send it to your lender.
The following are some of the house loan documents:
- Identity proof.
- Address Proof
- Age Verification
- Educational Qualification documents
- Income Proof
- Business Proof
- Documents pertaining to the mortgaged property
You may want to check out house loan rates in India to select the best option for you.
Pay the Processing Fees for Your Home Loan
The lender may request a processing charge after submitting the house loan application form and all supporting papers. The processing charge for a area loan is non-refundable and varies with the lender. It typically ranges between 0.25 percent and 1.0 percent of the loan amount sought.
Before you complete an application, you must check different options online for home loans in India to explore some beneficial schemes.
Consult with the Lender
Upon submitting the form and supporting papers, the applicant must wait for further notification from the lender. During this stage, the lender or bank will review your information and determine the amount you are qualified for based on your repayment ability. Before the loan is approved, your lender will request that you come in for an in-person meeting.
Process of Documentation and Verification
Following the private talk, the lender will verify the given documents and other facts. Bank employees may even visit your house or contact your company to check the facts you provided in your home loan application. Your lender will also request for your credit score and credit report.
Home Loan Sanction Letter
You will now get a loan approval or sanction letter, which will typically include the sanctioned loan amount, effective rate of interest, type of interest rate, the loan term, method of repayment, particular scheme, terms & conditions of your home loan, policies, as well as home loan tax incentives.
Ensure that the interest rate provided to you is the best in the market. So, Check out competitive home loan rates in India for reference.
Verification of Property and Legal Check
The bank will check the property pledged before disbursing the loan. Original copies of the title deed, no objection certificate, encumbrance certificate, and any additional papers requested by your lender will be required. Thus, A legal check will be performed on the property to ensure that the title is clear and that no disputes exist.
Disbursement of House Loan
After completing the preceding stages successfully, you will receive the final agreement from the lender. Finally, the house loan cash will issue under the mutually agreed-upon terms.
This guide emphasizes the most critical steps that you need to keep in mind while applying for a home loan. So, Successful completion of these will ensure that you get a home loan in no time.