HOUSING LOAN PROCESS!!
Almost everyone dreams of having a house of their own. Having your own house gives you a sense of financial security. It is also a major contribution to your assets. It’s a stated fact that investing in a house burns a big hole in your savings which is why a lot of people prefer to take housing loans and pay equated monthly installments lasting to almost 30 years. The process of owning your own house in India involves few procedural steps. These steps are mandatory to get the housing loan availed faster and smoother.
Let us understand how the housing loan works once you identify the property and finalize the deal:
- Filling up of the application form
- Document Verification
- Paying the processing fees
- Loan approval process
- Verification of the property documents
- Disbursal of Loans
FILLING UP OF THE APPLICATION FORM
The first and foremost stage is the filling up of an application form by the borrower. This application form will contain questions like your name, age, phone number, occupation, monthly income, annual income, existing liabilities, Educational details, etc. In this application, the borrower has to fill in the details of the property he/she is planning to purchase and also give in the details of the down payment which he/she can afford. Along with the application form attested ID proof and bank statements of the borrower should also be submitted. This online form can be filled offline as well as online.
After the form and the supporting documents are submitted to the lender there is a verification process followed. This is one of the major steps taken by the lenders which takes up to 3 to 4 working days. By this process, the banks confirm that the borrower is eligible and capable of paying monthly installments within the allotted tenure. There is also a possibility of the borrower being asked to visit the bank for an in-person interview.
PAYING OF THE PROCESSING FEES
After the first two steps, when the lender is convinced with the borrower’s documents, credit report, and eligibility, a housing loan processing fee is levied. A housing loan processing fee is a said percentage of the requested loan amount given to the lender or the bank to maintain the applicant’s loan account and complete the further steps. It is usually a non-refundable fee and varies from lender to lender. Many lenders skip the process of charging the processing fees
LOAN APPROVAL PROCESS
After paying the processing fees, the lender starts evaluating and understanding the payment capacity of the borrower. Based on that the decision to accept or reject the loan is taken. A formal document is sent to the borrower that his/her loan has been sanctioned or rejected. This is by far the most crucial step in the entire housing loan process.
VERIFICATION OF THE PROPERTY DOCUMENTS
This step requires the borrower to submit the original property-related documents for verification. Post verification these documents are kept with the lender until the full repayment of the loan. There is also an in-person verification of the property site by the lender’s team. Once all of these processes are completed and approved the process of disbursal is carried on.
DISBURSAL OF LOANS
This is the final step in the entire loan process. Once all the above steps are approved the final agreement is prepared and signed, the loan is disbursed to the borrower. The borrower now on has to pay monthly installments required by the agreement to the lender over a specific tenure period.
The above steps are mandatory in the entire process of home loan registration. However, they vary from different banks to NBFCs. That’s exactly where we come in to picture. We, at Moneymax have helped home buyers to get loans. We ensure that your entire process will be smooth and hustle-free. For more details, you can write to us at firstname.lastname@example.org and visit www.moneymaxfingrow.com, or call 9092090817.