Home loan is a sum of money borrowed from financial institutions to purchase the houses. Purchasing a house is a dream for many and involves a lot of financial planning. Home Loan makes it simpler for those who want to recognize this dream. Home loans contain of a variable or fixed interest rate and payment terms. The property is mortgaged to the financier as a security till the repayment of home loan.
Home buyers should try to find out the easiest and appropriate approach for attractive home loan from finance companies:
- Attractive interest rates to make an affordable Home Loans
- Personalized repayment options with suitable EMI plan
- No hidden charges.
- Expert legal and technical analysis to help make the right home buying decision.
- Processing Charges of Home Loan.
Home Loan approval process
Home Loan approval process always consider on below key points by financial institution for home loan:
- Assessment: Financial institutions will determine that you can afford the loan repayments. The credit team will conduct investigation of income verification and validate the accuracy of the information you have provided.
- Age Eligibility for Loan: Salaried persons, persons engaged in business / professionals and self-employed persons. Financial institutions are considering a limit of age 65 for salaried persons and age 70 for self-employed persons.
- Security of Loan: The financial institutions retain properties original papers as a mortgage.
- Repayment of Loan: In convenient equated monthly installments up to 25 years or borrow attaining age of 70 years whichever is earlier (subject to conditions).
- Credit check: A credit check will be carried out to disclose the credit history;
In this case the financial institution as a lender will obtain a credit report that will show the following details:
i)Personal details such as: Name, Residential Addresses, Date of Birth and PAN card number
ii)Records of some recent credit accounts
iii)Overdue Accounts (Defaults) which may have been listed against your name, including an indicator on whether the default amount has been paid or not
- Credit History: A credit history plays an important part in the home loan process. It is always advisable to clarify and resolve any credit related issues before lodging loan application.
- Security Assessment for Home Loan: Based on the technical and legal assessment report, the financial institutions will determine if the property is suitable for mortgage lending purposes.
- Technical Assessment: The qualified technical officers will conduct a valuation on the property. The selected property which is on hold to purchase that will be used as security.
- Legal Assessment: The qualified lawyers will examine the properties documents i.e. chain of property papers etc. to determine if the property documents provided by you are beneficial for lending.
Property Documents for Home Loan
Property Documents would be required by financial institution for Home Loan when you are going to purchase a property. you need to find out the valid property documents:
- The copy of all property papers along with Sanction Plan (from starting to till date)
- Sale deed / Agreement for Sale
- The copy of the approved plan for the proposed construction / extension
- Detailed cost estimate / valuation report from Bank’s Panel, Engineer / Architect
- Allotment letter & NOC
- Receipt of Property Tax paid / Electricity Bills
Home Loan Disbursement Process
Basis completion of all the above investigation the “Home Loan Disbursement Process” will be started. The operations team will complete the final check of loan, credit history, security assessment, existing loan payments.
- You need to accept the offer of bank’s loan
- Need to submit the processing fees and some documents formalities
- Post clearance the cheque of processing fees, the disbursement cheque of the approved amount is prepared by the Operations Manager and it is handed over to customer.
- The first home loan repayment will be started one month later from the disbursement date.