10/10/2017
Hi Guys,
We are new for this domain and not familiar about this, Now we are leaning by collection information about the real estate from such different sources.
Here we describe the information and Source Links about the things which are discussed.
Today we are update about How to apply and what we need to look out while applying for home loans?
The image shows the overall information about the home loan from application tot Loan disbursal, and such points were added here
Before we go for home loan, Need to check this:
• Narrow down the property you would want to purchase, and know the purchase price (including registration and stamp duty charges). In case of a resale property, check documentation, especially title documentation. Once you and the seller have agreed on a price, you can kick start the application process.
• Know that you can also apply for a loan sanction letter, even if you have not finalised any property at the time of application. Each sanction letter carries a validity period (that may differ from lender to lender), so make sure you keep track of the same.
• Identify the home loan provider you would wish to apply to. This can be done online, by evaluating various banks, housing finance companies and NBFCs.
The home loan process:
Step 1 - Application form submission: Make your application, either personally at a branch or online. If online, allow for a representative to get in touch with you, to take the process further.
Step 2 - Payment of processing fees: Typically between 0.25 percent and 0.50 percent of the loan amount, these need to be paid at the time of loan application. Some lenders do reduce the fee amount or even waive it entirely, so do check with your lender prior to paying up.
Step 3 - Field verification: Lenders verify the borrower’s personal information, including conducting a residence and employment check.
Step 4 - Personal discussion: Application scrutiny and verification is the next step, which includes a personal discussion or PD, wherein the lender will evaluate your application and ascertain your repayment capacity.
Step 5 - Credit appraisal: At the lender’s end, there comes the loan underwriting process, which will determine the exact terms and conditions of your loan, including the loan amount being sanctioned, the rate of interest etc.
Step 6 - Offer letter issuance: The lender will now issue you an offer letter, which mentions the following details –
Amount sanctioned
Rate of interest
Loan tenure
Other terms and conditions
Step 7 - Legal and Valuation check: An important stage in the process is that of property valuation and verification, which requires you as the borrower to submit original documentation such as title search documents, no objection certificate etc. for the lender to verify. Legal checks on the property are also undertaken.
Step 8 - Document registration: This involves registering the documents post the legal and valuation check.
Step 9 - Signing of loan agreements and submission of post-dated cheques: The loan agreement is to be signed, and post-dated cheques are required to be submitted as per the loan agreements.
Step 10 - Loan disbursement: Finally, upon completion of all documentation and related formalities, the loan is disbursed, as per the conditions mentioned in the loan agreement either upfront or in tranches (for an under construction property), as per requirement.
Important to Notice:
It is entirely possible that your application is rejected at the first instance, which can be due to non-fulfilment of eligibility criteria or on account of incomplete documentation. Make sure your application is complete and accurate in all respects.
With most lenders, processing fees are non-refundable, so ensure you do check prior to application.
The loan amount sanctioned being lower than the one you had applied for.
Make sure you know the interest rate that you are signing up at, and whether it is fixed or floating.
Source Link : https://www.quora.com/What-is-the-process-of-applying-for-a-home-loan
Author : Arun Ramamurthy, Co-Founder,Credit Sudhaar
