Step By Step Of Home Loan Process

Home Loan Process :

Home Loan Process is not that difficult. The same goes for Home Loan Process. Most of the potential borrowers stuck on how to initiate Home Loan Process. You can apply for Home Loan with or without financial the Property. The start Home Loan Process, follow these simple steps

Self Assessment

Before starting Home Loan Process, visit the website of a Bank for the list of documents required. You may collect list of documents from Branch. i will refer Bank or HFC as “Bank” in the post. If you have already financial the property then arrange the property documents as per the list of Property Documents required by Bank. In this case, Home Loan Process will be fast.

Apply for Home Loan

Visit the nearest branch of Bank representative who would assist you to complete the Home Loan process. Easiest way is to place enquiry on bank’s website and they would get in touch with you. Fill the Home Loan Application & Submit all the documents along with processing fees.

Home Loan assessment by Bank

Next step in Home Loan Process is Home Loan Assessment Bank will evaluate your application and fix your Loan Eligibility. Some of the factors considered by bank are

• Income
• Age
• Completed loan application
•  Passport size photographs
• ID proof (photo copies of Voters ID card/ Passport/ Driving
• License/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/
• Property tax receipt/ Passport/ Voters ID card)
• Proof of business address for non-salaried individuals
• Statement of Bank Account/ Pass Book for last 6 months
• Signature identification from present bankers

Bank would carry residence, office and CIBIL verification along with other checks as mentioned above during Home Loan Process.

Property Valuation and Legal Verification

Bank will verify the independent Legal Verification of the property through lawyer. The lawyer will issue Title Certificate or Legal Verification Report to Bank. A borrower may request for the copy of this report by paying nominal fees. Bank will appoint Value who will fix the Fair Market value of the property. The property value is to ensure that appropriate loan amount is approved against the property.In case the property you have finalized is already approved by Bank, they may not carry the legal and technical verification again.

Home Loan Sanction

After complete verification, Bank will sanction the Home Loan against Property. A sanction letter will be issued to Borrower. Now the borrower is ready to sign Home Loan Agreement. Home Loan agreement will contain all the terms and policies related to Home Loan. Borrower is also supposed to submit original documents, ECS along with cheques and other undertakings as per the requirement of the Bank to complete Home Loan Process.

Loan Disbursement

After the Home Loan Agreement is signed, Borrower may finalize the date of Property Registration in coordination with Seller. Simultaneously borrower may give written request to Bank for Disbursement or Demand Letter. Bank will issue DD/Banker’s Cheque for property registration.

Important Points:

1. You may avail the service of representative of bank who will help you during entire Home Loan Process

2. Original documents of the Property will remain with bank during Home Loan Period

3. If property value is less than 20 Lacs then you may avail maximum loan equivalent to 90% of Property value

4. If property value is more than 20 Lacs than you may avail maximum loan equivalent to 80% of Property value subject to your repayment capacity evaluated by bank

5. In case you are staying in city and would like to buy a Property in City. You can apply for Home Loan.

6. A CIBIL Score of 750 does not guarantee assured Home Loan approval. Home Loan is approved based on multiple factors and Perceived Risk Profile of the Potential borrower.

7. Home Loan approval is not involving anyone at the discretion of bank

8. Stamp Duty & Registration cost is not included in property where as HFC include the same in Property value. 

9. Home Loan Process takes anywhere between 10-14 days to complete