Home Loan
Home buyers should try to find out the easiest and appropriate approach for attractive home loan from finance companies:
- Attractive interest rates to make an affordable Home Loans
- Personalized repayment options with suitable EMI plan
- No hidden charges.
- Expert legal and technical analysis to help make the right home buying decision.
- Processing Charges of Home Loan.
Home Loan approval process
- Assessment: Financial institutions will determine that you can afford the loan repayments. The credit team will conduct investigation of income verification and validate the accuracy of the information you have provided.
- Age Eligibility for Home Loan: Salaried persons, persons engaged in business / professionals and self-employed persons. Financial institutions are considering a limit of age 65 for salaried persons and age 70 for self-employed persons.
- Security of Home Loan: The financial institutions retain properties original papers as a mortgage.
- Repayment of Home Loan: In convenient equated monthly installments up to 25 years or borrow attaining age of 70 years whichever is earlier (subject to conditions).
- Credit check: A credit check will be carried out to disclose the credit history; in this case the financial institution as a lender will obtain a credit report that will show the following details:
i)Personal details such as: Name, Residential Addresses, Date of Birth and PAN card number
ii)Records of some recent credit accounts
iii)Overdue Accounts (Defaults) which may have been listed against your name, including an indicator on whether the default amount has been paid or not
- Credit History: A credit history plays an important part in the home loan process. It is always advisable to clarify and resolve any credit related issues before lodging loan application.
- Security Assessment for Home Loan: Based on the technical and legal assessment report, the financial institutions will determine if the property is suitable for mortgage lending purposes.
- Technical Assessment: The qualified technical officers will conduct a valuation on the property. The selected property which is on hold to purchase that will be used as security.
- Legal Assessment: The qualified lawyers will examine the properties documents i.e. chain of property papers etc. to determine if the property documents provided by you are beneficial for lending.
Property Documents for Home Loan
Property Documents would be required by financial institution for home loan:- When you are going to purchase a property you need to find out the valid documents:-
- The copy of all property papers along with Sanction Plan (from starting to till date)
- Sale deed / Agreement for Sale
- The copy of the approved plan for the proposed construction / extension
- Detailed cost estimate / valuation report from Bank’s Panel, Engineer / Architect
- Allotment letter & NOC
- Receipt of Property Tax paid / Electricity Bills
Home Loan Disbursement Process
Basis completion of all the above investigation the “Home Loan Disbursement Process” will be started. The operations team will complete the final check of loan, credit history, security assessment, existing loan payments.
- You need to accept the offer of bank’s loan
- Need to submit the processing fees and some documents formalities
- Post clearance the cheque of processing fees, the disbursement cheque of the approved amount is prepared by the Operations Manager and it is handed over to customer.
- The first home loan repayment will be started one month later from the disbursement date.
Pre-approval Home Loan
Pre-approved Home Loan: Pre-approval means you should be able to get the loan as long as nothing changes about your financial situation or your credit score. A pre-approval letter helps when you want to compete with another buyer for a home you like.
Pre-approval Home Loan affect financial position: Pre-approval is based on the information given at the time of your application. Any changes, like getting a different job or taking out a car loan and the other loans, can result in rejection of the loan request when you go to purchase a house. Example:
Existing Loan Payments
Debt Consolidation
Avoid Make Inquiries into your Credit Score
Avoid being a co-signer for anyone
Avoid mendacious or stretching the truth on your loan inquiry
Avoid Start Banking With New Financial Institutions
Avoid switch bank account till “Pre-approved Loan Disbursal”
Hold changing jobs till “Pre-approved Loan Disbursal”
Hold Buying a Car till Pre-approved Loan Disbursal
Avoid buy furniture or household goods on credit till “Pre-approved Loan Disbursal”
Existing Loan Payments
Existing loan payments: The pre- approved loan is based on the current status of your existing bank balance. You want to maintain that status and wait to make any financial changes until after you have gotten your loan. You must keep your payments current on all your loan accounts, including credit cards and car loans. The financial institutions will look at your credit again before finalizing your loan, and if you have missed any payments, it may lead to you losing the loan.
Debt Consolidation
Look out before consolidate your debt: Debt consolidation can be attractive when you finally start looking at buying a home. Maximum consolidation offers make it possible for you to bring all your debt under one umbrella payment. But there are also often hidden fees and interest rates that can increase your liability without expectation. Consolidation may not improve your credit in the way you expect so be sure and careful for your future. The loan approval is based on the current status of your existing bank balance.
Avoid make inquiries into your Credit Score
Avoid make inquiries into your credit: Any time you apply for a credit card, a loan or even try to sign up for a new service and financial institution necessity to decide if you are a safe risk. But when the mortgage company sees that inquiries are being made, it may assume you are trying to take out more debt – even if you aren’t. While one or two queries may not be enough to lose your home loan, there is no reason to take unnecessary risks when you are so close to getting your home.
Avoid being a co-signer for anyone
Avoid being a co-signer for anyone: The pre- approved loan is based on the current status of your existing bank balance. You want to maintain that status and wait to make any financial changes until after you have gotten your loan. When you co-sign a loan, you are obligating yourself financially. It is apply for all signatories and does not matter that who are the primary applicant on the loan. If the lender needs money and is unable to get it anywhere else, it will come looking for you to pay. Home lenders are well aware of this fact and are therefore disapproving of any applicant that decides to co-sign. You should try to postpone co-signing until you have disbursethe money for your home purchase.
Avoid mendacious or stretching the truth on your loan inquiry
Avoid mendacious or stretching the truth on your loan inquiry: You may have no intention of lying about your finances when you fill out a loan application, but the point needs to be stated regardless. Mendacious on a loan application is fraud, and if the lender finds out that you mislead in any way, you will almost certainly lose your loan. The loan is based on the current status of your existing bank balance. You want to maintain that status and wait to make any financial changes until after you have gotten your loan.
Avoid Start Banking With New Financial Institutions
Avoid start banking with a new financial institution: The pre- approved loan is based on the current status of your existing bank balance. You want to maintain that status and wait to make any financial changes until after you have gotten your loan. If you are changing banks before getting your loan can disrupt everything. Yours banking history and status is part of the equation that leads to you getting pre-approved. Change your bank may not get final approval.
Avoid switch bank account till “Pre-approved Loan Disbursal”
Avoid switch bank account till “Pre-approved Loan Disbursal”: The approval is predicated on the present status of your finances. You would like to take care of that status and wait to form any financial changes until after you’ve got gotten your mortgage. If a lender sees you moving money around various accounts, they’re going to invite evidence. You’ll get to give them an in depth accounting of why you moved your money around. Avoid making this error and keep your money in one place before closing. Sometimes buyers make the error of shifting their money around to raise position themselves, but this is often an error.
Hold changing jobs till “Pre-approved Loan Disbursal”
Avoid changing jobs: If you are buying a home and received confirmation for pre-approved loan, at that duration changing jobs is not something you should do in the middle of purchasing a home. One of the things the financial institutions look closely at is your employment history. They want to be sure that you are financially stable and capable of making your loan payments. Through changing a job before you get your loan, you make yourself less appealing to the financial institution. Changing situations may cause the lender think you are unstable, or that you won’t have a fixed income to keep up with the mortgage. Keep your movement under consideration of your situation.
Hold Buying a Car till Pre-approved Loan Disbursal
Avoid buying a car: The pre- approved loan is based on the current status of your existing bank balance. You want to maintain that status and wait to make any financial changes until after you have gotten your loan. Purchase a car can throw a struggle into your home buying plans. Pre-approval loan should be based on the state of credit score and your debt load at the time of pre-approval before you bought a car. Adding the debt that the car purchases will bring may make you unable to get the loan for your home.
Avoid buy furniture or household goods on credit till “Pre-approved Loan Disbursal”
Avoid buy furniture or household goods on credit: The pre- approved loan is based on the current status of your existing bank balance. You want to maintain that status and wait to make any financial changes until after you have gotten your loan. If you want to start buying furniture and appliances to fill up your new home on credit you should pause till disbursal of your loan. Taking on new debt, even for furniture or other household related items will change the status of your credit and may throw up a flag for the lender that leads to the loss of your loan approval.
