Obtaining a home loan is a smart decision, with numerous advantages from lower interest rates to tax deductions. It can also help you build on your credit score, allowing you to acquire more credit in the future. Purchasing a home can be a big commitment, but with a home loan, you have the flexibility to be able to make monthly payments that are more budget-friendly. Moreover, loans can help you obtain a property that may have been out of your price range, giving you the opportunity to purchase your dream house.
In a previous blog we have already talked about types of home loans available in India and rules and regulations attached to it. Read here.
In this blog, we will discuss step-by-step procedures to get a home loan.
STEP BY STEP PROCESS TO GET A HOME LOAN
There are several steps involved in the sanctioning of a home loan –
- Application: The first step is to fill up the application form with all your details like name, number, address, type of employment, etc.
- Document Collection: Once your application is accepted, representatives will ask to submit required documents like, passport, adhar card, driving license or Voter ID. They will ask for an employee ID card, salary slips of the last 2 months, bank account statements for the last 3 months if salaried and 6 months if self-employed. In case of business, document proof of business of minimum 5 years and also the documents of the property to be mortgaged.
- Document Processing & Verification: The lender will process the documents and verify them after proper investigation. They will also check your CIBIL score to see whether you have a defaulter issue on your previous loans.
- Sanction Letter: A sanction letter with loan amount, rate of interest, type of interest rate and repayment tenor details will be sent to you after a successful completion of all the above steps.
- Secure fee payment: The lender will ask you to pay a one time secure fee after you sign the sanction letter.
- Legal & Technical Check: The lender will do a thorough legal and technical check before disbursing your loan. They will inspect the property with their executives.
- Loan Agreement & Disbursal: After all the inspections you will get a final agreement and then your loan amount will be disbursed.
Are you thinking of availing a home loan? If you have a query, do write to us in the comments below.