What is the Procedure for Applying for a Home Loan?

What is the Procedure for Applying for a Home Loan?

Everyone dreams of owning a dream house but the amount of money it takes to buy a house is a lot. Loans have made it possible for people of all classes to fulfill their dream of buying a house. If people had to invest in a home they would prefer buying a home that is in the city or very near to one. As a result, Thane is becoming one of the biggest markets for real estate in recent times. So when you Buy Home in Thane how do you get around to the loan application process? This article could help your loan application process be easier when you buy Home in Thane.

1. Fill the application form and verify the documents.

The process of taking a home loan begins with the borrower filling an application form. The application form is the most basic document in which you have to provide personal information. You must also provide details about the property you wish to purchase, the estimated cost of that property, and the down payment you can afford when you wish to buy Home in Thane. After you submit your documents, the bank verifies the documents provided by you. The process could take up to 2-5 days depending on the bank. You might also be asked to visit the bank for a face-face interview with them.

2. Background check.

Once the bank has verified your document they launch an investigation into your background. The bank does this to make sure you have the repayment capacity for the loan you took to buy Home in Thane. the bank will launch an investigation into all documents you provided this includes contacting people in your previous residence and contacting your employers asking inquiring about you. The bank will go a step ahead and also check for the credibility of your employers or your business.

3. Processing fee.

When the bank is satisfied with your background and is convinced about the repayment capacity of the borrower to buy Home in Thane they will start the process of approving the loan. To get approved for the money the borrower who will buy Home in Thane needs to pay a processing fee to access the funds. Banks typically charge anywhere between 0.25% and 0.50% of the principal loan amount +applicable GST as processing fees. Paying your processing fee doesn’t necessarily mean your loan has been approved. You are paying the sum to start the process. The bank charges a processing fee because of the investigations conducted to check your eligibility to get approved for the loan when you buy Home in Thane and checking the value of the home.

4. Home loan approval.

By far, the most crucial stage in the entire home loan process; the bank now decides whether to approve or reject your loan for you to buy Home in Thane. To ensure that your loan is not rejected you must provide the bank with all the listed documents. This is also the stage in which the borrower can find out the maximum loan amount as approved by the bank, as well as the interest rate charged according to various tenures. The bank will communicate through confidential letters.

5. Property documents.

After you receive the official sanction letter approving your loan, you are required to submit the original property documents to the lending bank, which remains in the bank’s custody until the loan is repaid in full. The documents will include Sale Agreement execution, applicable NOCs from related authorities along with the seller’s name, ID and address proof, etc. the bank will verify the documents of the home when you buy Home in Thane.

6. Disbursal.

The disbursal of the loan will be when you will need to pay your down payment and the bank will pay the builder for the property you bought according to the sales agreement.