A Step-by-Step Guide to the Home Loan Process
The home loan process in India is fairly basic. Though the process is more or less the same for every lender, some of the steps can vary slightly. Further, the entire home loan process can take from few days to a few weeks. So, one must prepare their timelines accordingly. This is what the home loan process looks like in India.
1. The process of applying for a home loan starts with searching for a reliable and experienced lender. Today, there is no dearth of lenders in the market. So, you must spend some time and energy on finding the best lender for you. Get recommendations from friends and family members, read reviews online, customer experience stories, etc.
Then, reach out to a set of reputable lenders and request them for loan offers. Finally, compare loan offers with the help of a home loan EMI calculator and choose to go with the lender who has been in the market for at least some time, has a good reputation and is offering you a good home loan deal.
2. Once you have decided on the lender you plan to go with, the next step in the home loan process is applying for a home loan. These days, borrowers can apply both online and offline. While filling out the home loan application form, you will required to share certain details, such as your name, address, city of residence, monthly income, etc. These details are important as they help lenders create the right loan offer for you.
3. Next, pay a one-time, non-refundable loan processing fee and submit your home loan application form.
4. Once your lender receives your loan application, they will reach out to you and ask you to submit certain documents. The document requirements for home loans usually include KYC and identity-proof documents, income-proof documents and property documents.
After you submit these documents, your lender will start the home loan verification process. During this step, members of your lender’s team will go through all the documents provided by you and cross-check everything to make sure you have not falsified information or forged documents.
5. If you pass the document verification stage, you will move on to the property verification stage. During this step of the process, members of your lender’s team will visit the property you plan to buy with the loan money and pledge as collateral and assess its physical condition and fair value.
Further, a member of the legal team will go through all the property papers to make sure the title of the property is clean and the property is not engulfed in any kind of legal trouble. This is important to safeguard your interest as well as that of your lender.
6. If you clear this step of the process, your lender will release a home loan sanction letter containing details of the loan terms and conditions. Send a signed copy of this sanction letter to your lender and they will start working on the final loan agreement.
7. Once your lender drafts the final loan agreement, visit their office and sign the agreement.
8. After this, your lender will release the loan money into your account and you can go ahead and complete your property purchase.
Individuals planning to avail of a home loan must hire the services of a lawyer to help them understand every term and condition mentioned in the loan agreement. Do not sign any papers until you full understand what you are getting into and are ready to make the required commitment.
