With the countless benefits home loan provides, it comes with huge pre-requisites to avail the loan. Your bank might also charge you non-refundable processing fees between 0.25-0.50%. But banks have started waiving off this fee to attract borrowers. You can negotiate with the bank you are planning to apply. The process includes:
Getting Home loan Application: You can avail the application form from any bank office branch or download it online from their website. • Documents Along with completed loan application, some documents also need to be submitted. These include: • 3 Passport size photographs • Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card) • Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/Property tax receipt/ Passport/ Voters ID card) • Proof of business address for non-salaried individuals • Statement of Bank Account/ Pass Book for last six months
Applicant’s Verification: Once you submit all the documents, bank will evaluate your age, income, no. of dependents and most important you repayment capacity. Once you pass this process you will be called for a Face-to-face meeting. A field investigation will also be conducted to check all the information stated in the application form.
Offer Letter for the loan sanction: Once the loan is sanctioned, the bank will send an offer letter to the applicant with details regarding the home loan such as loan amount sanctioned, interest rate for the loan, type of interest selected: fixed or floating interest rates, loan tenure, mode of loan repayment, special scheme or offer if applicable and the general terms and conditions of the home loan approved. If you are satisfied with all the norms, then you can provide an acceptance letter with your signature to the bank to acknowledge the sanction.
Valuation of property & Registration of Home Loan agreement: All the legal documents of the property involved have to be submitted. The bank will perform legal check on the property. The bank will also perform a technical valuation of the property. After all the financial and technical valuations, the home loan will be registered on stamp papers. The loan agreement must be signed and submitted back to the bank along with post-dated cheques. The documents remain with the bank until the repayment of the Home loan.
Loan Disbursal After the Home Loan Agreement is signed, Borrower should finalize the date of Property Registration in coordination with seller and simultaneously Bank will issue DD/Banker’s Cheque for property registration. Source:http://www.bemoneyaware.com/blog/process-of-buying-a-house-and-getting-home-loan