What is the process of getting a home loan approved?
Buying a home is an incredibly important decision of one’s life. However, there are a few procedures here and there that might seem confusing. That is why we’re here to help. Applying for a home loan is a very simple process, except for a few details that need to be taken care of.
The processes involved in getting a home loan are:
#1 Applying for a home loan
- Placing an inquiry:
In order to begin this process, you’ll have to put forward an inquiry on the bank website and wait until the company representative gets in touch with you. Alternatively, you can also call the bank on the numbers provided in the “contact section” of the website or visit the nearest branch and immediately fill up an application form for a home loan.
- Documents required for a home loan
Below is the list of basic documents that you need to keep with you when you’re applying for a home loan:
- Proof of Age & Identity
- Proof of Residence Address
- Proof of Income- salary slips, form 16, income tax return
- Statement of accounts with obligation details
- Property Documents (In case you’ve finalized it) i.e. Allotment letter of agreement of sale & previous property chain link documents if the property is being resold
- Pickup/Submission of documents: A branch representative will visit your place to collect the aforementioned documents or you’ll have to go to the nearest branch of the bank and submit them.
#2: Loan Sanction
- Determination of financial eligibility:
Based on your age, income, existing loans and other information present in your documents, your bank will determine whether you’re eligible for a home loan or not.
- Valuation of property:
Once the above procedure is complete and your financial eligibility has been determined, the next step is to assess the property value.
- Legal Valuations:
This step is done to make sure that the property you’re buying is free from legal issues. Once all these procedures are done, your home loan will be sanctioned. You can also apply for a ‘pre-approved home loan’ in case you haven’t finalized on the property yet.
#3: Loan disbursement
- Signing the loan agreement:
Now all that’s left for you to do is sign the agreement along with your original property documents and some post-dated cheques and you’re done!
The bank will then issue a cheque in the favor of the property seller. Your EMI begins from the day the home loan is disbursed.
If at any point of time, you need a top up on your initial loan amount, that can be done too. All you have to do is contact the bank for clarity on the application procedure!
Last updated on February 6, 2018