A lot of thought goes into choosing the right Home Loan. There are several factors that you need to consider while deciding on a Home Loan. This is your quick guide to the Home Loan application process.
Are you eligible for a Home Loan?
You will need to check if you can afford the loan repayments. Once you submit your income information to the bank or lender, they will assess your eligibility for a Home Loan.
Review of your Credit history
Your credit history is an important deciding factor for the sanction of your Home Loan. Your lender will get a credit report with the following details:
- Personal details such as name, residential address, date of birth and PAN.
- Records of your credit accounts.
- Summary of any overdue accounts that are linked to your name.
It’s a good idea to resolve any credit issues before submitting your application for a Home Loan.
Additional Reading: What is the Perfect CIBIL Score for a Home Loan?
Conditional Sanction of Home Loan
If there are no roadblocks in your income verification and credit history, some lenders may give you a conditional sanction of your Home Loan. The lender will offer an acceptance letter in the name of the applicant/s of the loan.
Property Assessment
A technical officer will evaluate the property that you want to buy as well as inspect any property that you provide as collateral security. The documents pertaining to the property will also be scrutinized by a lawyer.
Additional Reading: Your Home Loan Closure Checklist
Disbursal of Home Loan
On your acceptance of the loan offer extended by your lender, the assessment is done and documents are scrutinized. Once this is completed, you will need to submit the cheque for the final processing fee to your lender.
When the processing fee is received by your lender, a cheque for the approved loan amount is prepared and given to you.
Your Home Loan repayment schedule will begin one month after the loan is disbursed.
Getting a Home Loan is simple, really. If you’re ready to get one step closer to your dream home, why don’t you browse our offers on Home Loans?