The demand
for buying a house in major townships or metropolitan cities grew higher. As
the demand grows higher and higher, major private and public sector banks,
financial institutions rush up their personnel to invite interested applicants
to provide home loans as a part of their revenue-generating activity.
When it
comes to the home loan part, it is a tedious but still exciting process in your
voyage of buying you a home. The process which we suggest here differs between
lenders and it is final from the lender's side. Following will be the complete
or step-by-step guide to your home loan process which ensures a smooth and
trouble-free ride in your journey.
KNOW
THE LENDING RATE+INFOS
Before pulling
the gear, you must get to know the info of the bank/financial institution's lending
rate, processing fee, documentation charges, the processing time, and their
customer service in order to continue applying for the home loan.
This can
help you choose the right lender for your loan because the bank can make
flexible changes based on your requirement but not entirely in your favor. They
should also meet their standard regulatory policies and procedures at their
end.
LOAN
APPLICATION FILING & KYC
The process
begins with your home loan application filing and submitting the necessary KYC documents
from your side. Before filling up the application form, the banker may ask you
to submit basic information about you like
1)
Personal details
2)
Communication address
3)
Occupation & monthly income
4)
Collateral property for pledging against your loan
5)
Estimated cost of the property
Once your
filling is done, you are asked to submit some of the valid documents like
1)
Personal identity proof
2)
Age proof
3)
Address proof
4)
Employment/occupation proof, income proof
5)
Educational proof and bank statements
6)
Property document.
Using any
of the key documents, your credit score will be checked from the bank's side.
Thus by checking your credit score, the bank can see the transparency in your
loan/financial history and find any defaults (if there exists any).
If the
score meets the standard one, the banker steps forward to get the necessary
documents.
Related page: Check your credit score for free
PROCESSING
FEE & EVALUATION
Once
the formal application and document submission are done, the applicant has to pay
a nominal processing fee to the bank. This amount is charged for maintaining
and handling the loan account documents.
The
processing fee of any bank usually may vary from 0.25
% to 0.50 % of
the requested loan amount. After collecting the processing fee, the bank may
scrutinize the documents submitted to check whether it is true. It may take 1
or 2 working days to get back to you.
In
the evaluation process, a bank employee or third-party agent may visit your
residence to make sure all your documents are true and valid. Upon the authorization
from their visit, your application moves one step further.
SANCTION/LOAN
DISBURSAL
A
bank usually double verifies the applicant’s documents to approve a home loan:
1) 1) The
qualification, age, and experience details.
2) The transactions
carried out by the applicant with his bank
3) The
monthly and yearly income.
4) The
current employer and the type of job he/she pursues.
5) The nature
of the business (applicable only for business people).
6) The
applicant’s potential to pay the debt with the interest rate fixed against the
loan.
Based on the information furnished above, the bank finalizes and communicates the maximum loan amount the applicant can receive. In the end, the bank offers an official sanction letter.
ISSUING
OFFER LETTER:
1) Once the sanction
letter is offered, the applicant can find the details mentioned in the
letter.
2) The loan
amount that is being sanctioned.
3) The
interest rate on the total loan amount.
4) Whether
the interest rate is variable or fixed.
5) The loan’s
tenure details.
6) The mode
of loan repayments.
7) Terms, and
conditions applicable against the home loan.
Once the
offer letter is officially accepted by the applicant, the bank next
concentrates on the home property he/she intends to purchase. Even if it is not
finalized, the applicant can request for time duration to select one.
Once
the property is selected, the applicant has to:
1) Submit all
the original property documents to the bank. It remains with them until the
loan/debt is paid.
2) 1) The
original property papers will normally include the following details:
3) 2) The name
of the seller.
4) 3) The
identification and address proofs of the seller.
5) 4) The name
of the property.
6) 5) The
address of the property.
7) 6) The chain
of written documents if the seller isn’t the primary or actual owner.
8) 7) NOC (No Objection
Certificate) from the primary legal owner (if any).
9) 8) NOC from the statutory development board representative & cooperative housing society. If the land is already on a lease, the bank will require a NOC from the leaser as well.
SITE ESTIMATION
Every bank
is highly cautious with the loan it lends and the home property it plans to
finance. Hence, a technical check or a double verification is done. The bank
sends a third-party agent to verify the premises an applicant is eager to buy.
Now, this
person could either be an employee of the bank or a civil architect, or someone
from an agency that helps site estimation for the bank.
The visit
to the “site property” is basically conducted for verifying the details given
below:
1) The stage
in which the construction is.
2) Quality of
the construction.
3) Work
progression.
4) The time
required to build the house.
5) The layout
of the house and whether the governing authority has permitted it or not.
6) Property
valuation and the environmental areas.
If the
constructed area is at the ready stage, then the representative will check for:
1) Age of the
property.
2) Internal or external property maintenance.
3) The
quality of the construction.
4) The
surrounding area.
5) The valid required
certificates to hand over the house’s possession or control to the buyer.
6) The
existing mortgage on the home property.
7) The
property valuation.
8) The site approval plans, abide by the government laws, etc.
LOAN AGREEMENT & SANCTION
After this, the original property papers have to be handed over to the
bank. This is one of the safety measures for the bank.
Once the applicant signs the papers and everything is legally valid, the
loan amount is delivered via cheque. Before this, the applicant has to submit a
few required documents to the bank; this will be an additional submission to
the home property.
If the applicant is trying to outsource any other funds, then valid evidence must be submitted. Only then, the bank disburses part amount through installment.
To book your 2bhk/3bhk house with financial assistance/home loan from reputed banks, call Maniiway City Developers ☎ 98423 29990.
Follow us @Facebook
Must-Read Blogs:
Must-know facts about DTCP Approval | Estates Buzz
Boon of investing in "Global City" Residential plots, Now in Tirupur | Estates Buzz.
Comments
Post a Comment