Don’t all of us dream of becoming homeowners? Like most people, it might be a way of ensuring lifelong financial security for you too. A kind that does not come from living in a rented home. However, buying a home may seem like a challenging and complicated process.
Whether it is the years of saving to be given as a down payment or finding the right locality to invest in, it can be elaborate.
But one thing that you can consider is home loans as property investments can deplete a considerable chunk of savings. You can apply for home loan and pay it off in easy equated monthly installments for tenures lasting up-to 30 years.
The best way to go about it is to research and use the home loan calculators on banks’ various websites. It will provide you with the information that will help you plan your financials.
Given below is a step by step guide to help you apply for home loan:
- Fill the Application Form
After using the home loan calculator and choosing the bank, you can start the process. When you apply for home loan, the first step is to fill an application form. It is a primary document where you have to provide personal information like your name, address, phone number, occupation, income, and other details. Further, you may be required to provide information on the property you wish to purchase, its estimated cost, and the down payment you can afford.
Note that some banks may ask you to furnish your ID proof, income certificate, bank statements, and others with your application form.
- Verification of Documents
Once you submit the documents after you apply for home loan, the bank will verify them. One of the most crucial aspects of the home loan process, banks may take up to 2 whole days to confirm your documents. Around this time, you may also be asked to visit the bank and appear for a face-to-face interview. It is, in general, the bank’s way of confirming that you can repay your loan within the stipulated tenure.
- Background Check
One step that banks usually follow after applying for home loan is to conduct an independent background check. They need to be sure of your credentials. The chosen bank may conduct an investigation basis the information supplied by you in the application form. They may check your previous and current residential addresses, the place of employment, your office details, and others.
- Processing Fee Payment
Once the bank is convinced about your repayment activity, it will begin the housing loan process. Sometimes, you may have to pay a processing fee, which is when the bank collects to process your loan application. Typically, banks charge anywhere between 0.25% and 0.50% of the principal loan amount.
- Loan Approval Process
The most vital stage after you apply for home loan is when the bank decides whether to approve or reject your loan. It is also the stage when you can find out the maximum loan amount approved by the bank. You can use the home loan calculator to evaluate it and know the interest rate charged by the bank.
- Processing the Property Documents
Once you receive the official sanction letter approving the loan, you will be required to submit the original property documents. It will remain with the bank until the loan is repaid in full. The bank will verify the property documents before approving the loan. Their officials may physically visit the property site, once before the loan’s approval and then after the loan’s sanction.
- Loan Disbursal
It is the final step after you apply for home loan. The home loan disbursal stage includes the registration of the loan deal. It further comprises the acceptance of terms and conditions of the sanction, the signing of the loan agreement, and the down-payment by the lender agreement.
After the completion of these steps, you can avail of your dream house. It will be wise to research and use the home loan calculator to compare the plans and banks to find the most suitable option. Otherwise, you can opt for reliable banks like Axis Bank. They offer 24 x 7 customer service to help you understand the plans in detail.