The house buying procedure may be easy or challenging. Most of the complications are involved in getting the home loan sanctioned. Well, coming up with a home loan is an efficient and smooth process, however, most people consider it to be frightening. This is because they don’t have a clear understanding about the overall concept. The home loan process can be divided into the following steps-
Home Loan Process
- First and foremost you need to fill up a home loan application form. The information is more or less the same for all the banks. Generally, they ask for information like professional details, personal details, information about liabilities and assets as well as property details.
- After filling up the form you will have to go in for a face to face, personal discussion. This allows the bank to gather additional details that you may have not included in the application form.
- Tens and thousands of people apply for home loans every day. Now, every loan seems a risk to the bank and this is one of the reasons why it validates or confirms the details you offer. The bank confirms all the details included such as your place of employment, residential address, and work and residence telephone numbers, to name a few. There are times when the banks can send its representatives to verify the information included.
- If the bank feels unconvinced with the credentials then it can reject your application form and vice versa.
- After the loan has been sanctioned you will receive an offer letter including the following information- interest rate, loan amount, Loan tenure, repayment mode, terms and conditions of the loan, whether variable or fixed interest rate is associated with a reference rate or not and other special conditions
- Now, the bank focuses on the property you plan to purchase. After you have chosen your property, make sure to submit all the original property documents to the bank
- Banks are very cautious concerning the property they are likely to finance. Hence, prior to offering the loan amount it sends its representation on an inspection
- Valuation is termed as an important factor that determines the loan amount which is supposed to be sanctioned by the bank.
- After the technical and legal valuation check, the draft documents should be finalized, signed, stamped as well as registered.
- All borrowers are supposed to sign the agreement. In addition to this, ensure submitting post dated cheques for the first 3 years.
- After the bank ensures that the property is technically and legally clear it transfers the property ownership documents in your name. Finally, the time has come to make the payment! The bank provides 85-90% of the estimated amount whereas you need to provide the rest.
Stay connected to get more information about home loan procedure, processing time, fee, process underwriting and many more. Follow the step by step included above and get introduced to a simplified home loan process.