The demand for buying a house in major townships or metropolitan cities grew higher. As the demand grows higher and higher, major private and public sector banks, financial institutions rush up their personnel to invite interested applicants to provide home loans as a part of their revenue-generating activity.

When it comes to the home loan part, it is a tedious but still exciting process in your voyage of buying you a home. The process which we suggest here differs between lenders and it is final from the lender's side. Following will be the complete or step-by-step guide to your home loan process which ensures a smooth and trouble-free ride in your journey.

KNOW THE LENDING RATE+INFOS

Before pulling the gear, you must get to know the info of the bank/financial institution's lending rate, processing fee, documentation charges, the processing time, and their customer service in order to continue applying for the home loan.

This can help you choose the right lender for your loan because the bank can make flexible changes based on your requirement but not entirely in your favor. They should also meet their standard regulatory policies and procedures at their end.

LOAN APPLICATION FILING & KYC

The process begins with your home loan application filing and submitting the necessary KYC documents from your side. Before filling up the application form, the banker may ask you to submit basic information about you like

Personal details

Communication address

Occupation & monthly income

Collateral property for pledging against your loan

Estimated cost of the property

Once your filling is done, you are asked to submit some of the valid documents like

Personal identity proof

Age proof

Address proof

Employment/occupation proof, income proof

Educational proof and bank statements

Property document

PROCESSING FEE & EVALUATION

Once the formal application and document submission are done, the applicant has to pay a nominal processing fee to the bank. This amount is charged for maintaining and handling the loan account documents.

The processing fee of any bank usually may vary from 0.25 % to 0.50 % of the requested loan amount. After collecting the processing fee, the bank may scrutinize the documents submitted to check whether it is true. It may take 1 or 2 working days to get back to you.

In the evaluation process, a bank employee or third-party agent may visit your residence to make sure all your documents are true and valid. Upon the authorization from their visit, your application moves one step further.

SANCTION/LOAN DISBURSAL

The sanction part is one of the most crucial parts of a home loan process. This can either have a favorable result or can be rejected. If the banker is not satisfied with any of the documents submitted by the applicant, the probability of approval turns less or if everything goes smooth, the loan will be sanctioned or approved.

A bank usually double verifies the applicant’s documents to approve a home loan:

The qualification, age, and experience details

The transactions carried out by the applicant with his 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 business people)

The applicant’s potential to pay the debt with the interest rate fixed against the loan

ISSUING OFFER LETTER:

Once the sanction letter is offered, the applicant can find the details mentioned in the letter

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, and conditions applicable against the home loan

Performing a legal verification

Once the offer letter is officially accepted by the applicant, the bank next concentrates on the home property he/she intends to purchase. Even if it is not finalized, the applicant can request for time duration to select one.

Once the property is selected, the applicant has to:

Submit all the original property documents to the bank. It remains with them until the loan/debt is paid.

The original property papers will normally include the following details

The name of the seller

The identification and address proofs of the seller

The name of the property

The address of the property

The chain of written documents if the seller isn’t the primary or actual owner

NOC (No Objection Certificate) from the primary legal owner (if any)

NOC from the statutory development board representative & cooperative housing society. If the land is already on a lease, the bank will require a NOC from the leaser as well.

SITE ESTIMATION

Every bank is highly cautious with the loan it lends and the home property it plans to finance. Hence, a technical check or a double verification is done. The bank sends a third-party agent to verify the premises an applicant is eager to buy.

Now, this person could either be an employee of the bank or a civil architect, or someone from an agency that helps site estimation for the bank.

The visit to the “site property” is basically conducted for verifying the details given below:

The stage in which the construction is.

Quality of the construction.

Work progression

The time required to build the house.

The layout of the house and whether the governing authority has permitted it or not.

Property valuation and the environmental areas.

If the constructed area is at the ready stage, then the representative will check for:

Age of the property

Internal or external property maintenance.

The quality of the construction

The surrounding area

The valid required certificates to hand over the house’s possession or control to the buyer

The existing mortgage on the home property

The property valuation

The site approval plans, abide by the government laws, etc.

LOAN AGREEMENT & SANCTION

After the paperwork is done, the applicant has to sign the home loan agreement. He/she has to submit the post-dated cheques for the first 36 months.

After this, the original property papers have to be handed over to the bank. This is one of the safety measures for the bank.

Once the applicant signs the papers and everything is legally valid, the loan amount is delivered via cheque. Before this, the applicant has to submit a few required documents to the bank; this will be an additional submission to the home property.

If the applicant is trying to outsource any other funds, then valid evidence must be submitted. Only then, the bank disburses part amount through installment.

To book your 2bhk/3bhk house with financial assistance/home loan from reputed banks, call Maniiway City Developers ☎ 98423 29990.