8 Step guide of Home Loan Process in India
Buying a house is the dream of many people and now it has become very easy to achieve it with the easy availability of home loans. So, the people rather of wasting their money in a rent house, they are investing in EMI and owning their dream luxury apartments in Chennai in the starting period of the career itself.
Here I am providing a Step-by-Step of Home loan process:
1. Choose Bank you want to go with:
First, you go for an extensive research on the different types of banks providing the Home Loan. Check its eligibility criteria, different EMI options, compare the interest rates and offers of different banks to get the bank of your choice.
2. Fill the Loan Application Form & Attach The Documents:
After selecting a particular bank, complete the Application form and attach the entire document required for it. Keep the entire legal document related to property ready from your builder.
3. Pay the Processing Fees:
Typically the processing fees are between 0.25 percent and 1.0 percent of the loan amount. This non-refundable fees need to be paid with the loan application to open and maintain the applicant’s loan account.
4. Bank Investigation:
After submission of the application form & processing fees, this is the important step in the home loan process where the bank will investigate whether to approve the loan or not. They will investigate and verify all the personal and property details provided by you.
Then the bank will evaluate your repayment capacity. It is a crucial stage and totally depends on how much the bank is convinced with your capacity of repaying the debt and if they feel that you will be able to return the loan in time, then they will sanction the home loan.
5. Offer Letter:
After all the verification procedure, the bank will sanction your loan against the Property (Flats, Villa or Plots in Chennai) and will send you an offer letter which will include information related to the tentative principal amount, type of interest rate (fixed or floating), the rate of interest applicable, Loan tenure, mode of payment, special Scheme (if any) and other terms and conditions.
You need to sign the acceptance letter, and give a copy of it to the bank for records.
6. Legal and Valuation check:
This is a property valuation, and verification stage in which the bank will technical valuate the property by the original property documents and NOC handed over by you to the bank. Legal checks on the property are also undertaken.
7. Registration and Signing:
Once all the verification process got over the bank will prepare a legal stamp paper loan document by their lawyer. You need to sign and submit the agreement to the bank. A post dated cheque also should be submitted with the agreement letter to the bank.
Finally, you should submit the NOC / Tripartite agreement and demand note from the builder for loan disbursement. After you sign the papers and everything is legally clear the bank will issue DD / Banker’s Cheque for property registration.
The above stated steps are based on the common Home loan process, and it may differ from bank to bank.