The first step involved in the process is to find your property which is followed by the verification of property documents, post that the documents are examined & simultaneously you can start searching for the lender who can offer the BEST Home Loan Deal after checking your eligibility criteria.
Know the Home Loan Eligibility: Banks offer the loan amount based on your Income and the property value .They will give you max amount in which your emi of Home loan and others loans is 50-60% of your income.
Other factor is that value of property.
Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however other fees & charges like Application fees, processing fees, legal charges should not be neglected when comparing various loan offers. To check the interest rates & other charges incurred by various banks, Deal4Loans has brought in a Home Loan Comparison Chart across various Banks.Banks offer Fixed and Floating rates in Home loans.
Most customers choose Floating rates
Applying for the Loan : After you have selected your lender, you have to fill in the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs.
Documentation & Verification Process: You are required to submit the necessary documents to the bank which will be verified together with the details in the application.
Credit & default check: Bank checks out the borrower’s loan eligibility (through repayment capacity) & the amount of loan is confirmed. The borrower’s repayment capacity is reached which is based on the income, salary, age, experience & nature of business etc. Bank also checks credit history through the Cibil Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand high credit score gives a green signal to your application.
Bank sanctions Loan & Offer letter to the borrower: After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.
Acceptance Copy to the Bank: The borrower needs to send an acceptance copy to the bank after the borrower agrees with the terms & conditions in the offer letter.
Bank checks the legal documents: The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank.
Signing of agreement & the loan disbursal: The borrower signs the loan agreement & the bank disburses the loan amount.
Documents required in Home Loan
In case of Salaried In case of Self-employed Employment certificate from the employer, Copy of audited financial statements for the last 2 years Copies of pay slips for last few months and TDS certificate Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company Latest Form 16 issued by employer Bank statements Profit and loss account for the last few years Income tax assessment order