Buying a home requires substantial financial investment, and homebuyers often turn to home loans to fund their purchase. Here, if you have a sound financial background, you can qualify for a pre-approved loan. Why, yes! All you have to do is submit a loan application to your preferred lender.
The lender makes an offer after reviewing your credit history. They can also pitch you a pre-decided amount by checking your financial standing and creditworthiness beforehand. Now, let us take a look at the various upsides to getting pre-approved home loans.
Faster processing and disbursals
In the case of pre-approved loan offers, sanctioning and disbursal procedure is much faster. Why? This is because your lender has already verified your loan eligibilities and repayment capacity at the pre-approval stage.
The lender only needs to validate the finalised property documents and other legalities during the disbursement of the sanctioned loan amount. Such quick processing helps when a property deal has a shorter transaction window.
Better position for negotiation
With a pre-approved loan offer, you can bargain and get a better deal from the builder. How? Since you already have a substantial amount secured for the purchase, the builder or property seller will consider you as a serious potential buyer.
Similarly, if a lending institution pre-approves your housing loan, it means your creditworthiness is high. And with a low debt-to-income ratio and an excellent CIBIL score, you can negotiate more attractive home loan interest rates and flexible repayment terms.
Additional Read: Top Benefits of Paying Higher Home Loan EMIs
Well-focused home search
There are plenty of options in the housing market, including villas, apartments, bungalows, flats, etc. With a pre-approved loan, you are aware of your loan eligibility and purchasing budget beforehand.
Thus, you can concentrate on finding homes within your budget. For instance, if you are eligible for Rs. 70 lakhs, you can easily look for properties within a price range of Rs. 65-75 lakhs. This will ultimately save you a lot of time and effort as you can quickly disregard out-of-bounds deals.
Improved financial planning
A pre-approved home loan helps you assess your financial situation clearly. You know your eligibility and how much amount you need to borrow. Now, you can even use a loan EMI calculator to plan your future expenses like EMIs and interest payable before making the down payment.
Additional Read: Home Loan Approval: How to Get a Home Loan Approved Instantly
Pre-approved loans simplify your home buying process. So, if you are looking for a reliable lending institution to finance your housing aspirations, choose Tata Capital. We extend a wide range of tailored home finance offerings. Get loan amounts as high as Rs. 5 crores.
At competitive interest rates starting at 6.90%, you can apply online with minimal documentation. Our simple and transparent process ensures quick approvals and disbursals. You can opt for extended loan tenure of up to 30 years.
Furthermore, you can plan your repayment by calculating your EMIs and interest payable with our home loan EMI calculator to get a clearer idea of your future finances.
To know more, visit our website today!