Many people avail a home loan in order to buy a house. It provides them with the financial assistance required to fund the purchase of a house. However, to get a home loan, an applicant must follow the lender’s application process. This process can be confusing to many.
In this article, we will discuss how to apply for a home loan..
Buying a house can be very expensive. Hence, many get a home loan to finance their purchase. The home loan procedure requires you to follow a few important steps set by the lender.
Here are the steps to apply personal loan online:
If you're planning on availing a home loan, then this is the first step you'll have to follow. In this application form, you'll have to enter important details like-
Your personal information (Name, mobile number, etc.)
Your residential information
Your education details
Your income details
The property information
Along with the home loan application form, you'll also have to submit documents, such as-
Your identity proof
Your income proof
Your employment proof
Your address proof
Your education proof
The property documents
After the loan application form and documents are submitted, you need to make the payment of the processing fee.
In order to ensure the verification process is finished quickly, you must submit the correct documents. The lender will verify your residential address, employment details, the reputation of the employer, etc. The lender’s representative might visit your home or office to verify the details.APPLY NOW
Based on your information, the lender will determine whether to provide you with a home loan. In case they find any mistake, then your application might get rejected.
Generally, before approving a home loan, the lender will verify the documents submitted by you, such as your age, work experience, and qualification details. They’ll also check the income details, your job, and your employer’s reputation. Furthermore, the lender will check your repayment capacity when verifying the documents. If the documents are correct, then your loan can get approved effortlessly.
Once the loan is sanctioned, the lender will send you a sanction letter. This sanction letter will provide you with details like-
The interest rate (The lender will inform you if the interest rate is fixed or variable)
The loan amount
The loan amount
The methods of loan repayments
If you agree with all the sanction letter's details, then you need to sign its duplicate copy. It’s recommended to read the details before signing the letter. Also, if you disagree with the interest rate levied on the loan, then you can ask the lender to make changes to it.
After you accept the sanction letter, the lender will assess the property documents. In case the property isn’t selected, you can ask the lender for a duration to choose one.
The lender will validate the documents submitted by you. A legal check will be done on the documents you submit. If your property documents are authenticated during this check, then you can receive the home loan.
If you have selected a property, then you must submit documents like-
The seller’s name
The address and identity proof of the seller
The property’s name and address
In case the seller isn’t the primary owner, the chain of written documents is also required
No Objection Certificate(NOC) from the statutory development board representative and cooperative housing society
NOC from the primary legal owner, if any
If the property is on a lease, then the lender will require a NOC from the person who has leased it
The lender’s representative will visit the property for a technical check. The representative will verify details like- the construction quality, the layout of the home, etc. In case you opt for a resale property, then the representative will check information, such as the property’s age, the construction quality, the building’s approval plans, etc.
Once the representative finishes the technical inspection, the property’s value will be checked. This helps the lender determine the total loan amount.
Once the lender assesses the property, the final loan agreement will be created. The lender will submit you this loan agreement. You must sign it to avail the home loan.
Before the loan is disbursed, you’ll have to submit documents that inform the lender about your contribution to the purchase of a home loan. The loan will be disbursed once you sign the papers.
These are the steps you’ll have to follow to avail a home loan. Furthermore, in order to make the loan application smooth, you must submit the correct documents. If you want to avail a loan easily, then you should apply for home loan online.https://www.bankbazaar.com/home-loan-procedure.html