How the Sanction of Home Loan is done?


Home loan process is not so difficult one, but if we have all the documents properly which is required, then it becomes easier. You can apply for Home Loan with or without finalizing the Property. To kick start Home Loan Process, follow these simple steps.

  1. Self Assessment:
    1. You need to visit a bank which you are thinking to apply for a loan. If you have already selected the property, then you can automatically take the required documents and speak to the loan authority in banks. This is done to ensure that all documents are in place and to avoid any future shock during Home Loan Process.
  2. Apply for Home Loan
    1. You would receive good assistance from the bank authorities, if you have all the documents are proper.
  3. Home Loan assessment by Bank
    1. After the documents are submitted your application will be evaluated from the following factors to make it eligible.
      1. Income
      2. Age
      3. Nature of Job
      4. No of Dependents
      5. Existing Liabilities
      6. Repayment Capacity
  1. Property Valuation and Legal Verification
    1. Bank will conduct detail research and legal verification of the property with the lawyer. Bank will appoint value who fixes the fair market values of the property. This is done mainly to see how much your required property and yourself is eligible for getting loans.
  2. Home Loan Sanction
    1. After the verification the bank will sanction the required and eligible amount to the borrower. Borrower is also supposed to submit original documents, ECS along with cheques and other undertakings as per the requirement of the Bank to complete Home Loan Process.
  3. Loan Disbursement.
    1. After all the process Is done, the home loan agreement is signed by the borrower and then the borrower gives a written statement for the bank Disbursement or Demand Letter. Bank will issue DD/Banker’s Cheque for property registration.

As per the home approval it is also required to keep the CIBIL Score more important. And the loan process gets completed within 10-14 working days in order to process and disburse the loan amount.

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