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Tata Capital > Blog > Loan for Home > What Is Legal and Technical Verification in Home Loan Processing?

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What Is Legal and Technical Verification in Home Loan Processing?

What Is Legal and Technical Verification in Home Loan Processing?

To evaluate the creditworthiness of the borrower, most financial institutions use a range of risk assessment tools. Such tools are crucial to the processing and approval of home loans. However, in some cases, loan applications are rejected due to various legal and technical aspects.

But, worry not! This article highlights all you need to know about technical and legal verifications of your property for getting your loan approved. Read on.

Legal verification of a property

For the lenders to process your loan application, your property should be free from legal disputes. Therefore, they send a team of experts to examine and evaluate the respective property documents, such as the no-objection certificates (NOCs), title deeds, and other ownership papers for legal home loanverification. A group of certified lawyers usually undertakes the inspection process.

If it is an under-construction house, you must present relevant documents, including commencement certificate, encumbrance certificate (EC), NOCs, and occupancy certificate. An EC certifies that the property is free of legal contests and pending dues. Besides, you also need a builder-buyer agreement and paperwork proving that the builder can legally initiate construction.

After examining the concerned documents, the legal team prepares and sends a report to your lender. The report states the issues with the property (if any).

Technical verification of a property

In the technical assessment, the lender sends a team of technical experts to evaluate the property’s physical health, building specifications, and market value. They also examine the cost of raw materials procured, labour costs, and other details regarding the construction.

During this process of home loan verification, the officials also check if the building adheres to all the construction norms.

Additional Read:  How to Get Home Loan in India – Get Detailed Information

Importance of verification

The legal and technical verification of property plays a vital role in the approval of home loan. The legal inspection ensures that your property isn’t caught up in any legal complexities. Besides, it also allows you to steer clear of any legally-disputed realty deal.

On the other hand, technical verification is the deciding factor when it comes to finalising your loan amount. Based on the technical assessment, the team sends a detailed report to your lender, which decides your property’s value. Typically, lenders offer home finance worth 75%-90% of the entire property value.

Additional Read: Want to Own a Home? Find Out How

Wrapping up

It is crucial to keep all the necessary documents ready before your lender initiates these verification and valuation processes. In the end, you can rest assured knowing that the property you will buy is both legally and technically sound. And if you are looking for a reliable housing finance provider- turn to India’s leading lender- Tata Capital!

Avail of home finance up to Rs. 5 crores on easy home loan eligibility terms and competitive interest rates. Enjoy minimal documentation requirements, flexible repayment plans, extended loan tenures, hassle-free processing, and swift loan approvals. Besides, calculate your EMIs and interest payable with our online Home loan EMI calculator in just a few clicks.

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