Purchasing a home of your own may appear to be a daunting task because of the multiple processes involved. However, it is just the initiation of the process that intimidates people. If you follow these simple steps, availing a loan for your dream house will be a cakewalk.
Self-Assessment
Self-Assessment is the first step you take when applying for a home loan. It involves visiting a bank’s website or a nearby branch to collect the list of documents required for a home loan. This step will help you to prepare the necessary documents beforehand and save you from the last-minute panic.
If you have finalized the property, then arrange for the relevant documents mentioned in the list of Property Documents to speed up the process.
Compare Mortgages
Although the home loan interest rate is the same, one mortgage might not cost you the same as others. This is because there might be some variations in the point and fees charged by different loan providers. It would be best if you comprehended all the factors that come into play when determining the actual cost of your home loan to be able to avail the most affordable loan.
Apply for Home Loan
Once you have prepared the necessary documents, begin with the process of submitting your loan application. You can avail the assistance of a bank representative to complete the Home Loan process. For that, you need to visit the nearest brinanch of the Bank of your preference. You can also place an enquiry on the official website of the Bank.
Fill up your Home Loan application and submit along with the rest of your documents.
Bank will assess your Home Loan Application.
Now, it is Bank’s turn to assess your application and determine if you are eligible for the loan. Here are some key factors that come into play when determining your eligibility.
- Income
- Age
- Nature and Stability of your Job
- Number of dependents
- Present Liabilities
- Capacity to Repay
Bank will also carry verification processes for your residence, workplace and CIBIL, among other mentioned above.
Valuation of Property and Legal Verification
In case the property that you intend to purchase is not pre-approved by Bank, they will carry technical and legal verification to make sure that the right amount of loan is approved to you.
For this, they’ll hire a lawyer to conduct independent legal verification of the asset who’ll issue a Title Certificate also known as Legal Verification report. You can also purchase the copy of this report for nominal charges.
The technical assessment is done by a valuer whose job will be to fix the fair market value of the asset.
Sanctioning of the Home Loan
Once the verification is concluded, the Bank will sanction the Home Loan against the property. You will receive a sanction letter confirming the same, and you’ll be ready to sign the Home Loan Agreement. All the terms and conditions of the mortgage will be mentioned in the agreement. It is advisable to go through them before signing carefully.
You are also required to submit original documents, ECS in conjunction with cheques and other undertakings mentioned by the Bank. The Home Loan Process will now be complete.
Disbursement of Loan
Once the date of Property Registration is finalized, you’ll give a written request to the Bank for loan disbursement. A DD or Banker’s Cheque will be issued.
Conclusion
If your documents are complete and you have conducted your research, then Home Loan Process is a hassle-free task. Be sure to research the market and compare the cost of different mortgages before you submit your application.
