Financial institutions offer financial assistance in the form of a home loan to people aspiring to become homeowners. One can use such a loan to facilitate house construction or buy a brand-new home. Some home loans can be even used for repair or renovation purposes.
Lending institutions allow their borrowers to repay the money in monthly instalments. Here are a few easy-to-follows that will help a borrower understand home loan procedure in a simplified manner.
How to apply for a home loan?
By opting for a home loan, an individual can get various benefits such as lower interest rates, due diligence of property, tax benefits, etc. Below are the steps which one can check to get a clear idea regarding the home loan application process.
Step 1: Check eligibility criteria
Nearly all lending institutions have a few sets of criteria which an applicant needs to meet. Based on this, lenders will determine one’s creditworthiness and repayment ability. One must remember that eligibility criteria may vary from one financing institution to another.
Many online platforms offer free eligibility calculators. One just needs to put their name, income, city, and DOB to check their eligibility for a home loan. One can also use a house loan calculator to plan loan repayments.
Step 2: Select loan amount & tenor
After checking eligibility criteria, one needs to select a loan amount and tenor properly. A loan amount primarily depends on one’s income and other financial factors. Besides, cost of one’s property is another important factor when selecting the loan amount.
Loan tenor is the total time duration one would decide to take for repaying the loan amount with the interest. A borrower must assess their monthly budget and existing liabilities when considering the EMI amount they have to pay. Also, one should calculate and compare the interest rates levied by different lenders.
Step 3: Submit application form
Next, the applicant needs to choose a lender and collect the application form. One needs to fill up the form carefully with all personal details such as name, occupation, address, gross income, phone number, etc. Along with these, the applicant needs to provide their education and other property-related details.
One has to submit the duly filled form to the lender’s representative to file a home loan application. Nowadays, most financing institutions offer both offline and online application modes for house loans. In the case of online application, one can easily apply for home loan through their lender’s internet banking portal.
Step 4: Submit necessary documents
Every lending institution will ask for certain documents like address proof, identity proof, latest bank account statements, proof of income (for salaried people), proof of business (for self-employed people), etc. One must note that documents required for a home loan may vary from one lender to another.
Lending institutions ask for these documents to assess a borrower’s financial capacity and other verification processes. In regards to online applications, one needs to upload scanned and self-attested documents in the respective online banking portal.
Step 5: Loan sanction & disburse process
In this step, the lender will verify all submitted documents and application forms. Representatives of lending institutions will then start with the approval process. After approving one’s application, lenders issue a sanction letter stating the loan amount, rate of interest, and other relevant details. Lastly, the loan amount will be disbursed to the borrower.
How can I accelerate the home loan procedure?
Various financing institutions offer pre-approved offers to eligible applicants. An individual can check their pre-approved eligibility criteria by putting in a few details. Such offers are available for home loans, loans against property, and other financial products. A prime benefit of choosing pre-approved loans is faster processing.
Before choosing a loan amount, one must understand the basic difference between floating and fixed interest rates. A fixed interest rate means that the EMI amount will remain the same throughout the entire tenor. Whereas, a floating interest rate means the repayment amount can vary depending on the RBI’s repo rate.
One might find home loan procedure a bit confusing but with the right piece of information, it can be simplified. One must go through the process detailed on the lender’s website or ask a representative to ensure a smooth application.
Q1: What is the Seamless Journey in the context of home loans?
A1: The Seamless Journey refers to our streamlined and user-friendly process designed to simplify every step of your home loan application, making it a hassle-free experience.
Q2: How do I start the home loan application process?
A2: To begin the process, visit our website and fill out the online application form. It’s a quick and straightforward way to initiate your journey towards homeownership.
Q3: What documents are required for the home loan application?
A3: Commonly needed documents include proof of identity, address, income statements, property details, and bank statements. Our online platform provides guidance on the specific documents required based on your profile.
Q4: How long does it take to get loan approval?
A4: With our Seamless Journey approach, we aim for prompt approvals. Typically, you can expect to receive a decision within a few business days, ensuring you don’t have to wait endlessly for your loan status.
Q5: Can I track the status of my home loan application?
A5: Yes, our user-friendly online portal allows you to track your application status in real-time. You’ll receive regular updates, ensuring you’re always informed about the progress of your loan approval.
