Applying for a home loan is an stirring first step in your journey to owning your fantasy home. This need not be deluging with our step-by-step advice to the home loan procedure. While there may be trivial differences from one lender to another, the widespread procedure listed here will be common to all banks. Companies like Tema Fintech are facilitating Home Loans that are financially beneficial such as minimal EMIs where you can space out your installments over a longer tenure, desirable interest rates and some uniquely special advantages. This will help the buyers to attain the sophisticated home and lifestyle they have always been wishful for. So, if you’re thinking of taking a home loan or already have taken one, then consider these indispensable tips to reduce the interest payable. Following the steps given here will ascertain that your home loan application process will be untroubled and hassle-free.
Step - by-Step Advices to Home Loan Application Process:
1. Application of the Home Loan
You must yield an aptly filled application along with particularly significant documents such as identity proof, address proof, income proof, etc. If you are applying with a co-applicant, you must submit the aforesaid set of documents of the co-applicant, and they must sign the application form too. If you have already short-listed a good property, you must provide the particulars in the form and submit photocopies of the property-related documents for legal and technical evaluation.
2. Loan Approval
After you submit the form and the documents, the appraisal process initiates. The bank evaluates your eligibility based on particular information pertaining to your income, liabilities, credit score, etc. If you are self-employed, in addition to the above data, the bank also assesses the sustainability of business, and solidity of cash flow. Based on their assessment, they will decide upon your loan eligibility.
3. Legal & Technical Verification
You must submit pertinent copies of the property-related documents. These include the entire chain of title documents, sale agreement with the builder, NOC , OC , and any other document that they may need to verify. They will also carry out a technical assessment of the property to check if the property is constructed as per the approved plans and other applicable norms and to assess the market value.
4. Home Loan Sanction
After determining your home loan eligibility and verifying the legal and technical characteristics of the property, they will communicate the loan amount through a sanction letter.
The sanction letter will consist of the following details:
● Total sanctioned loan amount.
● Home loan Interest rate
● Type of interest rate applicable (fixed or floating interest rate)
● Loan Tenure
● EMI (as applicable) payable
● Validity of the sanction letter
● Special Conditions (If any) to be fulfilled before disbursement
● Other Terms and Conditions.
5. Home Loan Disbursement
After carrying out credit, legal and technical verification, the bank would require you to submit the original title documents. Once you submit the said documents and file a disbursement request, they will begin the process of preparing your disbursement cheque. You will be required to sign the loan agreement before the lender hands over the disbursement cheque to you. Make certain that you read the most significant details such as interest rate, interest type, loan tenure, EMI, and other terms and conditions meticulously before signing the loan agreement. If the property you want to purchase is still under construction, the bank will disburse the sanctioned amount in installments to the developer based on the development of construction. The mortgage loan process can seem intimidating, especially if you’re a first-time home buyer. Fortunately , you don’t have to go through it alone. Your real estate agent and mortgage loan officer will be your guides. But it still helps to know what’s coming at each stage of the process, so you can be well put together to ask the right questions and make informed decisions.