If you dream of having your own house but lack the necessary funds, you can opt for a home loan from a reputable lender. Today millions of people are buying their dream houses with the help of a home loan. You can also do the same. Here in this article, you will learn about the step-by-step process of applying for Home loans according to your preference.
Apply for the Loan
At first, you will have to fill up a form to apply for a home loan after finding the right lender. In this step, you need to provide your details and documents like identity proof, age proof, address proof, bank statements, employment details etc.
You are required to fill up the form providing the correct information. Providing any wrong or incorrect information is not recommended, or it may increase your chance of your application getting rejected.
Payment of the Loan Processing Fee
After providing the necessary documents to the lender, you must pay the home loan processing fee. The lender is to charge you some non-refundable processing fee. The fee amount may vary following the lender, ranging from 0.5% TO 2% of the loan amount. In this regard, you can find the right lender that charges you a minimum loan processing fee. You can also hire a Home loan agent to get the necessary help and assistance.
Scrutiny and Verification
In this step, you would be scrutinised as a loan applicant. The lender or bank will thoroughly verify all your submitted documents to ensure they are authentic. You will have to personally meet the lender to discuss various matters.
The lender will ask you several questions you will have to answer to prove your authenticity to them. They may also enquire about your credit history and another related aspect. This is considered the most important step in the home loan request process. If this step goes well, you will have a higher chance of getting your loan approved.
Revaluation of Your Repayment Capacity
If all your documents are in place, the lender will reevaluate your capacity to repay the loan amount and relived interest. In this step, you might be asked about your employment details, which you would have to answer honestly. This is another important step for you to go through. If the bank ensures that you can repay the loan, they will consider approving your loan request.
The bank is supposed to verify the property or home you wish to buy. In this case, you must submit various documents related to the home or property, such as title deed, NOC etc. The lender will also send a representative to physically check out the property you plan to buy. A proper technical valuation of your property will also be thoroughly done to ensure its worth.
Once all these steps are performed, the lender will disburse the loan amount. But before the disbursal, you should sign the loan agreement after abiding by their terms and conditions.
So you can see from the above discussion that you must thoroughly follow a few step-by-step methods to get a home loan.