Policies, Codes & Other Documents
Buying a house takes a lot of work. You must choose a house, negotiate a deal, pay the down payment, get a home loan to cover the rest, and register the house to your name. But for most, the home loan application process may seem just as big an ordeal.
In this blog, let us simplify the steps of an online mortgage application process.
Your eligibility depends on your income, age, credit history, property value, etc. With most financial institutions, you can check your home loan eligibility online. This will give you a clear idea of your required down payment and the cost of your EMI. Sometimes, you can also talk to your lender and negotiate a higher loan coverage based on your profile.
You can fill out the mortgage application form at your lender’s official website. Make sure to enter all your personal and financial details correctly.
You must submit two categories of documents. One is to verify your personal profile, like ID proof, address proof, employment details, income proof, educational proof, bank statements, etc. The other is to verify your property’s profile. This includes property documents like a sale agreement, sale deed, parent documents of the property, duly approved construction plans, encumbrance certificate, patta, property tax receipts, etc. The exact list may differ for each lender.
Home loan applications usually require a non-refundable processing fee as it involves legal and technical verification of various documents and the property. You can easily pay this fee online using your preferred method.
The first part of the loan verification process is verifying your personal profile and ascertaining your eligibility. The lender assesses and validates the submitted personal documents, checks your credit history and other liabilities, and finalizes your actual loan eligibility. The eligibility you check online is only indicative; the actual amount may vary based on the lender.
Your lender will verify the property’s legality and check for existing legal disputes. They may also conduct a physical evaluation of the property. Based on this evaluation, your property will be assigned an estimated value, and your loan will only be up to that amount. This is the longest step of the home loan approval process and can range from a few days to a few weeks.
Once the loan approval process is completed successfully you will receive a detailed sanction letter stating your loan's terms and conditions. The loan sanction is valid only for a limited time, and the registration and loan disbursal should be done by then.
In the case of a home under construction, the loan amount would be disbursed in parts at each stage of construction. The terms of disbursal will be clearly stated in the loan agreement. The loan amount for an already constructed house will be fully disbursed via a cheque drawn to the seller. The lender will give this cheque directly to the seller at the time of registering the property. After this, you will also have a mortgage registration with your lender.
Your lender’s home loan approval process may seem long, but it helps verify the authenticity of your chosen property. So even though the mortgage loan processing time is longer than other loans, it is worth the wait. To reduce your home loan processing time, you can get pre-approval from your lender based on your profile before finalising the property.
If you’re looking for flexible home loan at competitive interest rates, Tata Capital is your perfect partner. Our loans are affordable and tailored to meet your unique needs. Contact us today to know more!
Policies, Codes & Other Documents