What is the process for applying for a home loan, and how long will it take to get approved?
A home loan is a very important accessory in getting your dream house. People usually get overwhelmed by thinking about the home loan process but the truth is that the home loan process is quite simple. There are differences between lenders and choosing the right one can be a bit confusing for many borrowers. The process of home loan application can be explained through the steps mentioned below. process for applying for a home loan
Loan Application Form and Document Attachment :
The process starts the moment a borrower fills up the application form and the necessary documents are attached to it. Things such as identity, financial condition, property details, address of the applicant/ property owner, employment details are asked in the application form. The terms and conditions are also mentioned in the application form and are to be read properly by the borrower.
The documents such as income proof, address proof, identity proof, property details on which the loan is being applied are to be attached to the application form. Agrim housing loans provide a very convenient documentation process which is very helpful for the borrowers.
Payment of Processing Fees and Document Validation :
The borrowers have to pay the processing fees to the bank after the submission of the application form and the documents. It ranges from 0.25% to 0.50% of the requested loan amount. This amount can be negotiated but not always, The applicant can negotiate on this amount. After this process and some discussion, The bank or housing finance company starts to cross checking the documents. A representative is sent by the lenders to the residence or workplace to check the authenticity of the borrower. All the documents related to the identity, income, and property owner are cross examined and then the approval process begins.
The Approval Process and Generation of the Offer Letter :
This is one of the most important steps in the home loan process and it takes 4-5 business days for salaried applicants and 6-7 business days for self-employed applicants. In this process, Things such as qualification, age, nature of employment, income, and loan repayment ability are deeply checked by the lender. The information bank gets from this examination plays a major role in deciding the loan amount the lender. Agrim housing loans have a very quick and efficient approval process with higher approval rates and they also provide loans to applicants from EWS.
After the approval process, The offer letter is generated and it contains details such as loan amount, interest rate, tenure, terms and conditions, and nature of interest rate (fixed or flexible). This letter is sent to the borrower and is slightly negotiable.
Legal Check :
All the documents related to the property owner or homeowner and the property are checked by the lender’s lawyer deeply. If the lawyer approves the documents then a further process is carried out or more documents are required as per the lawyer’s suggestion.
Site Estimation :
The bank or financial company checks the concerned property and decides an estimated worth of the property to finalize the loan amount. The things which affect the worth of the property are location, area, condition, quality of the building or construction site, environmental areas nearby the property, and any existing loan. After this technical check and site estimation, The final deal is carried out.
Finalization of the Loan :
After the legal verification and site estimation. The lawyer drafts the necessary documents which are to be signed by the borrowers. After the final verification and agreement by both the lender and the borrower, The deal is closed.
If you are looking forward to applying for a home loan then you should be aware about the above mentioned steps to know about the home loan process. It usually takes up to 7 days for a home loan approval for self employed applicants and 4 days for salaried applicants but it can vary. Companies such as Agrim home loans provide a hassle fee loan process and also provide loans to applicants from EWS( Economically Weaker Section).
