Each individual fantasies about turning into a property holder. An approach to guaranteeing long lasting security doesn't come from residing in a leased house. However, purchasing a house is certainly not a simple cycle. Whether it's long stretches of reserve funds to be given as a store or tracking down an appropriate region to contribute, the technique for purchasing a house is definite. Since property speculation takes the measures of cash, the greater part of the people put stock in apply for a home advance. You will take out a home credit and pay it off in simple compared regularly scheduled payments (EMIs) for residencies enduring as long as 30 years.
The process to apply for a home loan in India involves several steps, which before the digitization of banking were complex and time-consuming for applicants. Today, the home loan procedure isn’t only easy but also quick. Your loan is often disbursed within every week.
Applying for a home loan
The procedure for a home loan begins with a formal application to the bank. In addition, you are required to provide your personal details for the bank to scrutinize and to assess your loan eligibility. Most banks will generally ask you for the following documents:
· Identity proof
· Address Proof
· Age proof
· Proof of educational/ professional qualifications
· Employment details
· Bank statements
· Proof of income
· Pan Card
· Property details (in case it is finalized)
Payment of loan processing fees
Your bank will charge you a non-refundable loan-processing fee. Most banks charge between 0.5 percent and 1 percent of the loan amount as processing fees. Banks use this amount for commencing and maintaining the home loan process.
Applicant’s scrutiny and verification
After you have submitted your application and the processing fees, the bank will evaluate your case and decide the amount you are eligible for. Post the personal interaction, the bank will proceed to verify all the facts and credentials you provided in your loan application. Bank representatives will visit your workplace and place of residence to validate the information you have provided in your application.
Evaluation of repayment capacity
Verification of the borrower’s repayment capacity is the most crucial part of the home loan process. The bank may sanction or deny your home loan request depending on how satisfied it is with your ability to repay the principal (with interest) on time.
Processing The Offer Letter
As soon as the loan is sanctioned or approved, the bank then sends a certified offer letter, which mentions the following details:
· The loan amount that is being sanctioned.
· The interest rate on the total loan amount.
· Whether the interest rate is variable or fixed.
· The loan’s tenure details.
· The mode of loan repayments.
· Terms, policies, and conditions of the home loan.
Processing The Property Papers Followed By A Legal Check
Once the offer letter is officially accepted by the applicant, the bank next concentrates on the home property he/she intends to purchase. Even if it is not finalized, the applicant can request for a time duration to select one.
The Final Loan Deal
Once the technical and site’s estimation is done by the bank, and the lawyer clears all the paperwork, the next step is the final registration of the deal. The lawyer of the bank finalizes the loan documents, drafts them, and have them stamped as well as signed.
Signing The Loan Agreement
After the paperwork is complete, the applicant has to sign the agreement of the home loan. He/she has to submit the cheques (post-dated) for the initial 36 months or the duration both the parties have agreed upon.
The Loan Disbursal
Once the applicant signs the papers and everything is legally clear, the loan amount is given via cheque. However, prior to this, the applicant has to submit a few essential documents to the bank, as these will serve as his/her personal contribution to the home property.