A home loan is an exciting journey in owning your dream home. there are some minor differences from one lender to another, the procedure will be common in all banks.
The documents needed for the processing of a home loan are as follows:-
- Fill out The Loan Application Form & Attach The Documents.
- Pay The Processing Fee.
- Discussion With The Bank.
- Valuation Of The Documents.
- The Sanction/Approval Process.
- Processing The Offer Letter.
- Processing The Property Papers Followed By A Legal Check.
- Processing A Technical Check & The Site Estimation.
- The Final Loan Deal
- Signing The Agreement.
- The Loan Disbursal
Fill Out The Loan Form& Attach The Documents:-
The process to apply for a Home Loan starts with an application form. The loan application requires some basic information about the applicant.
- The personal details of the applicant (Name, Phone number, etc.)
- The residential address of the applicant
- The monthly or yearly income of the applicant
- The educational information of the applicant
- The employment details of the applicant
- The property details on which the loan is applied
- The estimated cost of the property
- The present means of financing the home property
Required Bank Documents Are as Follows:-
- income proof
- identity (or ID) proof
- Age proof
- Address proof
- Employment details
- Educational proof (school/diploma/degree certificates)
- Bank statements
- Property details on which the loan is applied (if finalized)
Pay The Processing Fee-
In this step, the applicant will pay a processing fee to the bank. This amount is collected for maintaining the applicant’s loan account. It includes some of the confidential paperwork.
Discussion With The Bank-
In this step, he or she has to wait until the bank or the respective financial company checks the papers submitted. It takes about 1-2 days to check if the submitted paperwork is correct.
there are anyway times when the bank wants the applicant to pay a visit to the bank for a face-to-face interaction before the loan is sanctioned. This has to be done to collect details about the applicant. If you want to study in India then click here interest free education loan.
Valuation Of The Documents-
A fake document or any fraudulent document is unacceptable by the bank. It is considered a criminal offense. It leads to many troubles. When the application form & documents will submit the processing fee is paid and the bank authorities then evaluate them.
Documents Needed :
- Residential address (previous and current)
- Place where he/she is employed
- Credentials of the employer
- Workplace contact number
- Residence contact number
Approval Process-
If everything goes well, the loan will be sanctioned or approved in no time.
- The qualification, age, and experience details.
- The transactions made with the applicant’s bank.
- The monthly and yearly income.
- The current employer and the type of job he/she pursues.
- The nature of the business (applicable only for a self-employed).
- The ability to repay the loan amount with the set interest rate.
Processing The Offer Letter-
As the loan is sanctioned, the bank then sends a certified offer letter, which mentions the details as follows:
- The loan amount that is being sanctioned.
- The interest rate on the total loan amount.
- Whether the interest rate is variable or fixed.
- The loan’s tenure details.
- The mode of loan repayments.
- Terms, policies, and conditions of the home loan.
Processing The Property Papers Followed By A Legal Check-
When the offer letter is accepted by the applicant, the bank next focuses on the home property they want to purchase. If It is not finalized then the applicant can request a time duration to select.
Processing A Technical Check & The Site Estimation-
The bank is concerned with the loan it lends and the home property it planned to finance. A technical check and a double check are done. The bank sea nds property expert.
The Final Loan Deal-
Once the technical and site estimation is done by the bank, and the lawyer clears all the paperwork, the next step is the final registration of the deal. The lawyer of the bank finalizes the loan documents, drafts them, and has them stamped as well as assigned.
Signing The Loan Agreement-
After the paperwork is complete, the applicant will sign the agreement for the home loan. He/she then submits the cheques (post-dated) for the initial 36 months or the duration both the parties have agreed upon.
Conclusion-
Make sure that there is no possible delay in the house loan process after the approval. When the loan is sanctioned, the interest rates are charged from that day. Ensure the cheque is taken on the mentioned delivery date. Avoid paying additional interests accordingly.
