Home Loan Process at a Glance

 

Buying a home is one of the most important decisions you will ever make in your lifetime.

If you are short of funds, it is possible to apply for home loans and get a significant amount.

It is possible to use the home loan eligibility calculator and know an exact amount that your income can support over a tenor.

Since housing finance is secured, home loan interest rates are on the lower side.
Applicants with a robust CIBIL score, repayment and employment record can get loan approval at a reduced rate.

Many prospective borrowers unaware of the home loan process to apply for it.

Let’s check out the standard home loan process in this post now!

1. The application

The initial part of the home loan process is the application for it. Once you fill the online application form with some basic details, a lender’s agent contacts you for further action.

2. Document collection

The next step is document collection. A lender’s representative collects your loan documents from your doorsteps. Documents related to your identity, address, finance and income may have to be furnished.

3. The processing of the document and verification

This part of the home loan process involves processing and verifying your documents. Even running enquiries on your credit score is done to check out your home loan eligibility.

4. Sanction letter

After successful completion of the above steps, you may receive a sanction letter from your lender. You need to sign a copy and revert to your creditor to accepting the deal.

5. Payment of the secure fee

You are then asked to pay a one-time secure fee after signing the sanction letter.

6. Technical and legal checks

The lenders also run a legal and technical check before disbursing the loan amount. Agents are sent to your site for inspection before this.

7. The loan agreement and disbursement

A borrower now receives the final loan agreement after a lender has performed all checks. Now, the lender will disburse your approved loan amount into your bank account.

The standard home loan process is now known to you. You should check it with your creditor as it may vary from lenders to lenders.

Read Also: What is a Home Loan Processing Fee?