Planning to apply for a Home Loan? Cool! Here’s how to speed up the whole Home Loan approval process.
‘Don’t come back late at night!’
‘When will you pay the rent?’
‘Turn down the volume!’
‘Stop wasting water!’
Does this sound familiar to you? Are you tired of listening to these and other similar comments? Yeah, we know! Some landlords can be the interfering type and this can be quite annoying sometimes especially when they constantly ask you to change your lifestyle to make it more like theirs. Poor you!
Now, you can either make all these changes to your lifestyle and give in to your landlord’s demands. Or, you have another option. The option of living on your terms, in your own house!
Additional Reading: Important Tips On Buying A Home
What are you waiting for? Oh! We know! You’re wondering how you’re going to finance buying a house. That can be taken care of if you plan things right. You’re still not convinced that investing in property is the right thing to do? And what about the Home Loan approval process? Doesn’t it get tedious? We’ll tell you all about that but first let us tell you why investing in property should be your first priority.
Additional Reading: A Brief Guide To Investing In Real Estate
Here we go:
- You’re earning and financially independent
Being financially independent feels good, doesn’t it? Now, have you thought about securing your financial future? A crucial part of strengthening the foundation of a good financial life ahead is investing in property. Instead of losing track of money and spending it on things that you want rather than need, it might be better to invest in things that matter. And a house is a good investment option even if you live with your parents and have no plans to move out.
Additional Reading: 5 Ways To Raise Your Home Down Payment
- Real estate rates usually go up
Even if you don’t want to buy a house now, you will probably want to invest in property at a later stage. That shouldn’t be a problem if you earn a lot or have inherited a good amount of wealth. But in case you don’t fall in either of these categories, you need to start investing right now. Over time, property prices tend to go up. So, if you’re getting a good deal and a spacious apartment in a great locality, you’d better grab that offer.
Additional Reading: Avoid Real Estate Scams To Reap Rich Returns
- Regular source of income
Like we mentioned before, even if you don’t want to immediately move into a new house, you should still invest in it. Why? For the extra rental income, duh! You could either use that extra money and invest in the right places or use it for a gym membership. What you use it for is up to you. But the point is that you’ll have extra cash to use.
If it’s financial troubles that are keeping you from getting for your dream house, you don’t need to worry at all. The right Home Loan is the solution to your financial problems. If you’re worried about all the paperwork and those long queues at the bank, don’t worry. We have that figured out for you as well.
Additional Reading: All About The Down Payment For Your Home
Here are some hacks for a quick Home Loan approval:
- Paperwork pro!
Yes, to hasten things up the first thing you need to do is get all your documents in place. Even if someone asks you for your loan papers in your sleep, you must always be ready with them. It’s not that difficult after all. Documents are the most important part of the entire loan approval process. If you have all of them in place, no one can delay your loan application. But if you don’t want to get into this hassle, we have a better option for you—our paperless approval loans! You get the option to get your loan application approved within 24 hours, through a completely paperless process. How cool is that!
Whether you choose the paperless (no physical documents to be submitted) or regular conventional loan application process, here are the documents you need.
Let’s start with the property NOC (No Objection Certificate). This is one of the most important (and most ignored) documents. Better get that in place. Other key documents that you require include your identity proof, address proof, income proof, bank statement (to show a regular income) and of course the loan application. Once you have all these in place, half of your work is done.
Additional Reading: Home Loan Documents- Are you Salaried or Self-Employed?
- How much do you need to borrow?
For the answer to this question, you’ll need to do some homework. This includes conducting research according to your needs and preferences and finding the right house. Now’s the time to decide whether you need an independent house, an apartment or a villa. You also need to be sure about the locality you want to live in as the property rates will vary accordingly.
Take other factors like your financial ability and Credit Score under consideration. If you want to get the math right, we advise you to borrow up to 50% of your take-home pay. What about the rest of your salary? Well, you need to start saving and investing in the right places. Some other seemingly minor calculations that might affect the overall math are things like the down payment, and stamp duty and registration charges. Don’t forget to include these in your calculations otherwise you’ll surely be in for a huge shock!
If you’ve a good credit history, getting your loan sanctioned might not be that difficult. But if your credit history is bad, the bank might be reluctant to lend you the exact amount you ask for. Also, before just sanctioning your Home Loan, the bank might send its representatives to assess the price of the property you wish to buy. If the valuation matches your loan amount request, you can get a faster approval. In case they find some variations there, you might have to wait for longer. Ensure that you get your calculations right to avoid any unnecessary delays.
Also, knowing exactly how much you need to borrow is better than panicking half way through the construction of the house of your dreams. But in case that happens and you fall short of funds, you can always look at other options to get more cash. Using an existing property as collateral or getting financial help from relatives or friends could be some good options.
- Do you have that down payment figured out?
The down payment is a crucial part of your Home Loan. Depending on how much you have saved, your loan needs will vary. If you have been smart enough and saved well in the past, or invested in the right places, your down payment will be sorted. Making as large a down payment as possible always makes more sense than paying less initially and applying for a bigger loan.
Generally, after assessing the value of your property (the one you’re taking a loan for), banks provide up to 80% of the total value as loan. The remaining 20% must be paid as the down payment. To make your loan application move faster, you must get your property evaluated well in advance so that you know exactly how much you need to borrow. This way, your down payment and total loan amount, both, will be figured out.
- What is your interest rate type?
While choosing which Home Loan to apply for, you’ll have two types of interest rates to choose from—fixed or floating. How to choose between the two? It’s not that tough. You need to know the differences between the two, and we’re here to help you with that.
Fixed interest rates don’t fluctuate with the changing market rates. The rate of interest you opt in the beginning remains unchanged till the end of the loan tenure. Now this can be both a boon and a bane. Since the interest rates remain unchanged, you don’t have to worry about an increase (followed by an increase in the market rates). But that also means that even if the market rates fall, you’ll have to continue paying the same interest (which is higher than the market).
The floating interest rate, on the other hand, changes with fluctuations in the market rate. Now, a floating interest rate could be good, but it’s advisable to study the past interest pattern well. Studying these trends will help you make a better decision. If you choose to opt for a fixed interest rate, you must remember that banks still hold the right to revise the interest rates on your Home Loans anytime. Pre-deciding whether you want to go with the fixed or floating interest can help speed things up for you.
Additional Reading: Understanding Fixed & Floating Interest Rates On Home Loans
- Check the criteria checklist
If you’re planning to apply for a Home Loan, the most important thing that can save you a lot of time and effort is—checking all your documents and other criteria list. Knowing exactly what you’ll need to get that loan sanctioned can significantly reduce the amount of time you’ll otherwise waste on unnecessary things. You need to verify all your documents and other Home Loan essentials beforehand. This will minimise the need to repeatedly do the same thing over and over again, saving a lot of your precious time. These essentials include your Credit Score as well. Before applying for any loan, you must ensure that your Credit Score is good enough.
Click here to check your Experian Credit Score for Free.
The chances of a Home Loan rejection decrease considerably, if you have a good credit history. Better to get it all right in the first go, than applying over and over again, isn’t it? The worst part? A loan rejection could further damage your Credit Score. We’re sure you wouldn’t want that to happen, right? Therefore, checking all the necessary requirements before applying for a Home Loan makes sense.
If applying for a Home Loan is all that’s keeping you away from your dream house, it’s time you break all the mental barriers and apply. The process is not as cumbersome as it sounds. In fact, with the tips we just gave you, you can easily hasten it up. Quite cool, right?
We have some great Home Loan offers for you. What are you waiting for? Get your dream home today!