Homes are special because it is the place where a human being feels most comfortable and the safest. Your home is not just a tangible structure, but much more than that. No wonder people develop an emotional connection with their house. Nothing offers more freedom than owning a house – which is also considered to be a symbol of prosperity. However, it is difficult and certainly not cheap to buy a new home; especially if you are planning to buy one in a metropolitan city. Buying a flat would require a substantial amount of financial investment from your side. But, thanks to pre-approved home loans, it’s now possible to fulfill your dream of being a proud homeowner.
Generally, financial institutions may provide up to 80% of the property value while taking into account factors like location, mandatory fee deposits, documentation, builder’s reputation, etc. Hence, the role of financial institutions in providing monetary assistance simply cannot be downplayed. Even if your personal savings are insufficient, you can still fulfill your desire of purchasing a new house. There are many home loan eligibility calculators online that will help you ascertain your needs. Let’s first understand what is meant by the term ‘pre-approved home loan’ before proceeding any further.
As the name suggests, pre-approved home loans are sanctioned before the property deals are finalised. The application process is standard as any other loan product. However, you don’t have to submit any document pertaining to the property. Lenders may ask for basic documents for the purpose of validation viz. PAN card, address proof, income tax returns, salary slips, and bank statements. Borrower’s CIBIL score will be checked by the lender to gauge the home loan repayment capacity. In case they already have an existing loan, then the approval limit will be calculated by deducting the existing loan amount. Borrowers need to pay processing fees that will be eventually adjusted after the loan amount is disbursed.
Once the validation process is complete, your financial service provider will issue a pre-sanction home loan letter. Usually, lenders send this as a mail to your current address that is registered with them. Your pre-approved home loan will come with a period of 6 months before which you should finalise the deal. It’s important that you find a property within the aforementioned time frame – failing which you would be required to reapply for your pre-approved home loan – without the processing fees being returned or adjusted.
Benefits of Pre-Approved Home Loans
Quick Loan Disbursal
The verification process is done in the pre-approval stage itself, your loan amount will be disbursed quickly once you finalize the property. This facilitates the need for a quick transaction when it comes to finalizing the property in a limited time period.
Easier house hunting
Soliciting a pre-approved home loan will help you gauge your budget, making searching for the right house easier. There are many types of residential properties viz. villas, flats, independent houses and many more. Based on your financial capacity, you can narrow down your research.
Better negotiating power
You can leverage your sanction letter to negotiate with the builders or real estate agents. This is because you will be taken more seriously due to the evidence of your financial capability. Hence, this is another essential benefit of pre-approved home loans.
Financial planning becomes easy
Again, pre-approved home loans will provide you insights regarding your financial standing. This information will help you plan and manage your finances better.
Now that we have discussed the various benefits of pre-approved Bajaj Finserv home loans, consider applying for one as soon as possible and avail its benefits.
If you are looking for a home loan, consider applying for Bajaj Finserv Home Loan with Finserv MARKETS. Home loans with us come with attractive interest rates and a host of other features and benefits that can help you fulfill your dream of owning a house. So why wait? Get your home loan with us, today!
Also check whether you are eligible for pmay only at Finserv MARKETS.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”