A Home loan is a loan product where the lender provides funds for the purchase or construction of a house/ residential property. The home loan may be availed either for buying a new house or resale of an existing residential house. One can also benefit from a housing loan product, for the purpose of buying a plot of land and carrying out construction on the same. This kind of loan is called a composite loan. However, before making any decision, a borrower must consider the best home loan offers at the time.
In order to get a Home Loan, you just need to undergo a few steps, as given below.
The next step in the Home Loan process is the Home Loan Assessment. The bank will evaluate your application and fix your Loan Eligibility. For this, the bank considers the following factors:
The residence, office and CIBIL verification along with other checks mentioned above would be carried out by the banks, during Home Loan process.
The Bank will conduct an independent Legal Verification of the property through a lawyer. The lawyer will issue the Title Certificate or Legal Verification Report to the Bank. A borrower may request for the copy of this report by paying nominal fees. For technical assessment, the bank will appoint a valuer, to fix the Fair Market value of the property. The objective of this exercise is to ensure that an appropriate loan amount is approved against the property.
After complete verification, the bank will sanction the Home Loan against Property. A sanction letter will be issued to the borrower. This makes the borrower ready to sign the Home Loan agreement. The Home Loan agreement will contain all the terms and conditions related to Home Loan. Borrower is also supposed to submit his original documents, ECS along with cheques and other undertakings as per the requirement of the bank, in order to complete the Home Loan process.
After the Home Loan Agreement is signed, the borrower may finalize the date of Property Registration in coordination with the Seller. Simultaneously, the borrower may provide a written request to the bank for Disbursement or Demand Letter. The bank will then issue a DD/Banker's Cheque for property registration.