Step-by-step Guide to Avail a Home Loan
To ensure smooth processing of your loan application, make sure all the documents that you have furnished are valid.
Representative image. (Getty Images)
Gone are the days when applying for a home loan would be a complicated task. Today, online application for a home loan happens in a jiffy, thanks to high internet speeds as well as greater penetration. Considering you submit all the relevant documents, processing an application for a home loan can happen in merely a few hours.
While the exact procedure might differ across banks, here is a detailed step-by-step guide that can be of help. Read on to know more:
Fill in the application form
All you need to do here is fill in a few basic details about yourself (the applicant) including:
● Personal details
● Residential address
● Yearly/monthly income (as the bank recommends)
● Details of employment
● Details of property for which the loan is sought
● Estimated property cost
Once you fill in the application form, you will need to furnish relevant documents such as:
● Proof of income
● ID proof
● Proof of age
● Proof of address
● Bank statement
● Employment details
● Property details
Wait till the bank evaluates all documents
To ensure smooth processing of your loan application, make sure all the documents that you have furnished are valid. The bank usually verifies the following details:
● Residential address
● Employer details and credibility check
● Contact numbers (both residence and work)
The bank then decides on loan approval
This is certainly the make or break stage, wherein any document, if found fraudulent, brings down the likelihood of loan approval. Basis the following documents, a bank generally takes a call on whether to sanction the loan or bin the application:
● Check for applicant’s qualification and age
● Details of income (both monthly and yearly)
● Nature and financial details of business (applicable if applicant is self-employed)
● Ability to make the repayment in full
The bank sends the letter containing all loan details
Once the loan has been sanctioned, the bank sends across the letter containing all the loan details. These include:
● Amount of the loan
● Applicable rates of interest
● The type of interest rate (fixed or variable)
● Loan tenure
● Modes of repayment
● Terms of the home loan
Should you be agreeable to the loan terms and conditions, you would have to sign the offer letter, in duplicate. This is for the bank to keep.
Post the technical feasibility check and value estimation, the bank proceeds to ready the loan document. You will then have to sign the loan agreement and furnish post-dated cheques for the duration that has been mutually agreed upon by you and the bank.
All property papers, in original, should be submitted to the bank, in a step referred to as Memorandum of Execution.
After completion of necessary documentation and having obtained the go-ahead from the bank’s legal team, the appropriate loan amount would be disbursed.
To know more, click here.
This content has been created in association with YONO SBI.
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