“We are truly pleased to inform you that you are now eligible for a pre-approved loan. Apply with us now!”
How many times have you received such an SMS or email, congratulating you on your eligibility for a pre-approved loan?
Since buying a home is a big financial decision, potential homebuyers often turn to housing finance to back their purchase. Now, if you have a stable financial background, you might qualify for a pre-approved loan. Here, the lender makes a loan offer or extends a pre-decided amount based on your creditworthiness and financial standing. All you have to do is submit the loan application and required documents to avail the amount.
Not sure what to do? Here are 3 reasons why you should opt for a pre-approved home loan.
1. It helps you negotiate better
Given that you already have a pre-approved loan, it will give you an upper hand over the other buyers. Not to mention, with a pre-approval letter in hand, you can negotiate for a better price as the seller will think you’re serious about the purchase.
Not only the seller, but you can also negotiate with the lender for better loan terms. This is because the bank is already assured of your repayment ability and might be willing to offer you competitive home loan interest rates.
Additional Read – What Are the Benefits of Pre Approved Home Loans?
2. It speeds up the loan processing
The application process for the home loan becomes faster and simpler. Since the lender has already verified necessary documents at the pre-approval stage, the final loan disbursal is quick and easy. However, if you accept the pre-approved offer, you will need to find and shortlist a property within the next three months or the offer will expire.
While most pre-approved housing loans work like this, some lenders may give you additional time for property hunting.
Additional Read – Can we get a pre-approval for home loan in India?
3. It facilitates effective property search
When you decide to buy a house, there are several things to consider. From the right location, amenities to living space, must-have features, and more. And the biggest of all? The cost of the property. This can either make or break the deal.
When you get a pre-approved loan, you are in a better position to search for a suitable property as you now have a budget to work with. This helps you narrow down your options, making the selection process efficient. The best part? It saves you the trouble of choosing a house that doesn’t fit your budget.
Additionally, it gives you an idea of how much loan amount you need to borrow, further helping you in planning your finances better. You can then use a home loan EMI calculator to decide on a suitable loan tenure and get an estimate of your monthly payments. Found your dream home?
Then don’t let financial matters come in your way! Turn to Tata Capital. Our wide range of housing finance options will offer you quick funds at affordable interest rates. With flexible repayment tenure, minimal paperwork, and easy loan disbursal, convenience is now yours! Check your home loan eligibility today!