Been dreaming of the dream home for too long? Applying for home loan and getting it approved is an arduous process. However, it is important to know what’s going on once you have applied, because buying a home is a big step in everybody’s life and it is more than just your money that’s on the line here. Let us take a look at the general steps involved in the Home Loan process.
The application form needs to be filled in with the utmost care, with absolutely no errors. The applicant has to sign in the appropriate columns and nowhere else.
2) Individual discussion
Once the application is fulfilled, the lending institution evaluates the documents submitted, and calls for a one on one discussion with the applicant. This is the time when the applicant must carry their original documents and get it evaluated by the loan expert.
3) On field verification
The lending institution initiates a verification process to in order to verify the authenticity of the property in question. Aspects such as approvals, deviations, and ownership proof are verified in this step.
4) Valuation Check
The value of your property (apartment, land, etc) will be verified by the bank’s valuation and legal team. At this time, the legalities such as plan approvals, deviations, ownership proofs are verified by the legal team.
5) Credit enquiry
Your credit records are verified by the credit appraisal officer from the bank where you have applied for the loan. They will ensure that your repayment capability is up to the level of the loan amount you are about to borrow.
6) Loan Sanction
Once all the checkpoints are considered and verified, your loan is sanctioned.
7) Agreement signing
After the loan application is successfully approved, the agreement needs to be duly signed by the applicant after reading and understanding the various terms and conditions.
8) Loan disbursal
Depending on the type of home loan (ready property, under or self construction, loan against property and so on) you have availed, your loan will be disbursed after the agreement is signed.