Home Loan Process

Your dream home is not too far away now, if you’re hesitant about buying a home because you feel that getting a home loan is a daunting task. If you take care of a few important details at the very beginning, securing a home loan is easy. Here is a quick guide to home loan process and the steps involved before you become the proud owner of a beautiful home you dreamt of.

1
Find the property

The first and foremost step in home loan is to find your property. This is followed by the verification of property documents, after 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.

2
Check your eligibility for home loan

Banks offer the loan amount once you fit in the various eligibility criteria like age, income, salary and the property value. At Makemyloans.com our experienced team strives to give you adequate information about eligibility and consequently takes you to the right fit.

3
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 of different banks must be compared first before making the best choice. Use our comparison chart of home loan interest rates at Makemyloans.com to pick a lender who is offering good terms.

4
Apply for the home loan

Once the lender has been selected you have to fill the application form and give all the required information about your Personal ,professional, financial details liabilities details and property details It takes less than 3 minutes to complete the online application.

5
Documentation

Once decide a lender and applied online, there are various documents you need to provide. Our executives will collect your self-attested documents at your doorstep as per your convenience. We approach bankers to verify your documents to facilitate a hassle free Home Loan.

6
Credit and default check

Lender first checks the credit score and credit report of the applicant through CIBIL. The CIBIL Score plays a critical role in the loan application process. If the credit score is low, the lender may not even consider the application further and reject it at that point. The higher score chances of the loan being reviewed and approved.

7
Verification Process

Bank verification department will send a representatives to your house or workplace for field verification of the address given in the documents. Also, the bank will verify all other documents and other details mentioned in the application form. The bank takes 1 or 2 days for verification. If the verification result is positive, the bank processes the loan or else the personal loan application gets declined during this stage.

8
Approve or deny the loan request

The approval is at the sole discretion of the loan sanctioning officer whose decision is based on the criteria specified by the bank/financial institution. Your credit worthiness is calculated by bank on the basis of your income, age employer or firm with whom you work or in case if you are self-employed then your nature of work, bank statements and CIBIL report and then plans out the maximum loan amount that they can offer you. Incase bank issue a conditional sanction, all the stipulated conditions will have to be satisfied before loan disburse

9
Home loan Sanction letter

Once the loan is sanctioned, the banks sends you an offer letter mentioning the following details:

  • loan amount
  • Rate of Interest
  • Whether fixed or variable rate of interest linked to a reference rate
  • Tenure of the loan
  • Mode of repayment
  • If the loan is under some special scheme, then the details of the scheme
  • General terms and conditions of the loan
  • Special conditions, if any
10
Acceptance Copy to the Bank

Once you agree with terms and condition mentioned in the sanction letter you will have to sign and send an acceptance copy to Lender. They will keep that letter with them for their record.

11
Legal Check and Clearance of the Property

The lender conduct a legal check on your property documents. The documents are sent to a lawyer in their panel (either in-house or outsourced) for a thorough scrutiny. The lawyer’s report either gives a go-ahead if documents are clear, or it may ask for a further set of documents. In the latter case, you are expected to hand over the additional documents to the bank for a clear title.

12
Technical Check and Clearance of the Property

Technical valuation of your property will also conducted by lender. The lender verifies the technical specification and market valuation in terms of cost projected by the applicant. Lender will check evaluate the property on the basis of established parameters

13
Registration and Signing of Loan Agreement

Once the Lender is satisfied with your profile and your property then the loan agreement is signed by the applicant and bank. The original property documents have to be handed over to the bank at this stage. The applicant has to provide postdated cheques and have to pay stamp duty which is applicable.

14
Home Loan disbursal

Once the loan agreements have been executed, the disbursement of loan comes in to play. Lender sanction only 85 to 90 percent of the cost of the house. It is important for you to submit the documents revealing that you have given your part of contribution towards your home. The lender will disbursed the loan amount either in a lump sum or in parts depending on the actual situation.