Are you looking to apply for a home loan but haven’t picked out a property yet? Based on your creditworthiness, financial position and repayment capacity, you can get your loan approved in principle, even before selecting a specific property. This is known as a pre-approved home loan.
Read on to find out how it works.
Find the right property and get a good deal
Getting a pre-approval for home loan helps you focus on searching for the right property since you now have an idea of how much money you have at your disposal. You can stay within the budget and avoid wasting time on unreasonable deals. Having a pre-approved home loan offer in hand also gives you bargaining power over builders and sellers. They know that you are serious about buying and that you can make payments faster than other buyers. As a result, they may give you preferential treatment, attractive offers and discounts.
Additional Read: Want to Own a Home? Find Out How
Things you need to consider
A pre-approved loan offer is valid only for a limited time period, within which you have to identify and finalize the property for the loan to actually be disbursed. And even after identifying the property, you have to make sure that it meets the lender’s technical and legal due diligence requirements. If you fail to identify the property within the validity period, you will have to pay a nominal fee and get your home loan application reappraised. Also bear in mind that the final terms of the loan are settled at the time of disbursement. The interest rate, EMI, tenure and other technical aspects might change by the time you identify the property.
Get your loan processed faster
With pre-approved loans, your credit appraisal is done and your home loan eligibility is evaluated at the time of the home loan pre-approval process itself. At the time of disbursement, only the property documents need to be verified. This reduces the overall loan-processing time and ensures that you do not miss out on a good deal.
Good property deals are becoming increasingly scarce as the demand for affordable housing is rising. With pre-approved home loans, the buying process becomes easier and faster for aspiring homeowners. Especially with Tata Capital’s hassle-free pre-approved loans, offered at competitive home loan interest rates, with minimal and transparent documentation. You can transfer your loan balance and easily apply for home loan pre-approval online.
Additional Read: How You Can Repay Your Home Loan Quicker
Tata Capital home loans are tailored to help you cover costs for all your housing needs –
- Buying a new home/apartment
- Buying a piece of land to construct a house on it
- Remodelling and renovating
- Adding a new built-up area (Home Extension)
With Tata Capital, you can choose the loan amount, tenure, and EMI period as per your convenience. If you are looking for a flexible and reliable home loan provider with years of experience in the industry, your search ends at Tata Capital.
For more information on the home loan pre-approval process, get in touch with us and learn more.