These days tens of millions of urban Indians are opting for homes loans to buy their dream residences. But, most are not familiar with the process of procuring a home loan.
Consequently, many loans get rejected and lot of customers find themselves in a mess after securing the loan because he/she is unable to repay the debt.
It’s vital for homebuyers to be properly versed with the lender’s criteria for disbursing home loans.
It is also vital that they understand their economic obligations to the bank or financial institution on their purchase to keep away from a showdown within the future.
Read this article to know all about the home loan procedure and your loan eligibility and repayment liabilities.
Step 1: Applying for a home loan
The procedure for a home loan begins with a formal application to the lender. In addition, you are required to provide your personal details to scrutinize and to assess your loan eligibility. Most institutions 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)
Step 2: Applicant’s scrutiny and verification
After you’ve submitted your application and the processing costs, the financial institution will examine your case and determine the quantity you are eligible for. You’ll be required to submit a few minor papers, for a smooth processing of your loan
Step 4: Evaluation of repayment capacity
Verification of the borrower’s repayment ability is the most important part of the home loan procedure. The financial institution might also sanction or deny your application depending on your capability to repay the loan (with interest) on time.
Step 5: Property verification
Prior to disbursing the loan, the bank/NBFC will verify the property in question. You will be required to put up original copies of the identity, no objection certificate and different docs the financial institution may ask for.
An investigating officer takes a look at the assets to check that the title is clear and that there is no dispute.
Step 6: Home loan disbursal
Once all of the above-referred to formalities have been satisfactorily fulfilled, the registration procedure for the home loan commences.
The legal documents have to be prepared in a layout on stamp papers. You may be requested to proved post-dated cheques for the agreed term and sign the home loan agreement.
Relying at the type of disbursal agreed upon (whether or not lump-sum or in ranges), your lender will dispense with the amount. As a home buyer, you ought to carefully apprehend the home loan system and the following liabilities prior to making use for a home loan.
It is a good concept to test with a few banks and opt for the only which is inclined to provide home loan rate of interest. Make an informed desire.
I have read your whole post and get best information regarding home loan process.
Thanks Buddy.