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Step 1: Apply for home loan
The initial step involves filling the application form for home loan along with the required documents & one-time processing fee cheque.
Financial documents required:
For Salaried
• " Latest salary slip/salary certificate showing all deductions for the past six months.
• Form 16 for the past three years.
• If your job is transferable, permanent address to be provided.
• If you have been in your present employment / business or profession for less than a year, mention details of occupation for previous five years, giving position held, reasons for change and period of the same.
• Verification of employment details.
For Self-employed
• Computation of Income for the last 3 years certified by a C.A. & P&L and Balance Sheet for the last 3 years certified by a C.A.
• Copies of acknowledged IT returns for last 3 years.
• Information on the nature of the business/profession, year of establishment, bankers, etc.,
• Bank statement for last 6 months.
• Your net value as an applicant/co-applicant.
Step 2: Property Documents to be furnished:
• Title deeds of the builder/land owner for a period of at least 13 years.
• Development agreement between the builder and landowner if applicable.
• Power of Attorney executed in favour of the builder, if applicable.
• An encumbrance certificate for the past 13 years. An encumbrance certificate is report issued by registrar of assurances or sub-registrar's office after due verification of the relevant documents certifying that the property in question is free from all encumbrances such as mortgages, leases, easements or restrictions.
• A khata certificate. This certificate is the basic document indicating ownership of property as entered in the register of the government authorities.
• Tax paid receipts of the property.
• A sanctioned plan and license.
Step 3: Back-end Work at Loan issuing corporation/bank
• An agreement for sale and a construction agreement with the borrower.
• A comprehensive legal scrutiny will be done.
• Pre-sanction inspection of the property will be carried out.
• Credit review and personal interview.
• Following this, a sanction letter will be issued.
• Acceptance of sanction letter. Administrative fee to be paid at this juncture.
Step 4: Final documentation for the loan
• Tripartite agreement between the borrower, builder and the housing finance corporation to be submitted.
• Proof of investment of margin money to be submitted.
• Signing of loan papers by the applicants.
• The guarantee agreements to be executed by the guarantors.
• The original documents executed with the builder to be submitted.
Step 5: Disbursement of the loan
• Inspection of the property will be carried out to ensure progress of work done.
• Following this, there will be a release of loan amount directly to the builder to coincide with the progress of work done as per the agreement with the builder.
• No objection certificate from the builder to mortgage the property in favour of the housing finance corporation to be obtained.
• No objection certificate to be obtained from other housing finance companies if the builder has availed a project loan, to release the mortgage right over the flat to be financed by the corporation you are securing the loan from.
Step 6: After release of the loan amount
• Receipt to be acquired from the builder for the amount released.
• The sale deed, duly registered, must be attained.
• An encumbrance certificate will be deemed necessary.
• Tax-paid receipt would be required.
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