• online home loan compare

Home Loan Process

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.

  1. Apply for Home Loan
    • To apply for home loan on FinZkart.com - Fill up the form given to the left side.
    • Our specialists will search for best financial bank/NBFC depending upon your details.
    • Submit the documents required to process your loan.
    • Once you've completed documents have been submitted to the Bank/NBFC which is referred to as "File Login", you can login to your FinZkart account and check the status of your application.
  2. Home Loan assessment by Bank

    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:

    • Income
    • Age
    • Nature of Job and Stability
    • Number of dependents
    • Existing Liabilities
    • Repayment Capacity

    The residence, office and CIBIL verification along with other checks mentioned above would be carried out by the banks, during Home Loan process.

  3. Technical and Legal Verification

    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.

  4. Home Loan Sanction

    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.

  5. Loan Disbursement

    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.

Show More

Documents Required for Home Loan

  • Application form with photograph
  • Identity and Residence Proof
  • Latest Salary-slip
  • Form 16
  • Bank statements of previous 6 months
  • Processing fee cheque
  • Copy of the plan approved for the proposed construction/extension
  • Municipal/Society/Builder NOC, allotment letter provided by the housing board.

Important Points

  • You may avail the service from the representative of bank who will help you during the entire Home Loan Process
  • Original documents of the Property will stay with bank during the entire period of the Home Loan.
  • If the property value is lesser than 20 Lacs, then you may avail maximum loan equivalent to 90% of the Property value.
  • If property value is more than 20 Lacs, then you may avail a maximum loan equivalent to 80% of the Property value which is a subject to your repayment capacity evaluated by the bank.
  • In case you are staying in the city of Maharashtra and would like to buy a Property in the city of Punjab, you can apply for Home Loan in either Maharashtra or in Punjab for a property in Punjab.
  • A CIBIL Score of 750 does not guarantee an assured Home Loan approval. Home Loan is approved on the basis of multiple factors and perceived Risk Profile of the Potential borrower.
  • The approval of Home Loan is solely at the decision of the bank.
  • Stamp Duty & Registration cost is not included in property, whereas HFC includes the same in Property value. For example, if property value is 60 Lacs and Stamp Duty + Registration Cost is 6 Lacs, the bank will sanction Home Loan equivalent to 80% of 60 lacs, whereas HFC will sanction a Home Loan equivalent to 80% of 66 Lacs.
  • The entire Home Loan process takes anywhere between 10-14 days to be completed.