Applying for a Home Loan is a lengthy and complex process, it could be extremely nerve-wracking for someone who goes through the process for the first time. Yet, given the nature of the loan like any other loan, it requires a thorough background check of the financial status and income inflow of the borrower. Let’s try and break down the entire process of applying and procuring a home loan in a few simple steps:
When you apply for a home loan and for the bank to start processing your application they charge a nominal fee which is non-refundable. This is just the beginning of your application and the fee is inclusive of taxes. In case, your loan gets rejected this amount will not be refunded even in this scenario.
Investigation and Credit History
After the application has been processed, the bank starts investigating the lender’s background. They do physical checks about the applicant’s residential address, office address and verify the income too. The applicant’s credit history and CIBIL score for home loan is checked too. If any discrepancy is found in any of the crucial areas, the application is rejected.
A person’s age, education, income, employer, nature of his occupation, duration of employment is also checked. These checks are conducted along with the credit history to understand the borrower’s nature of expense and his credibility in terms of repaying and clearing the loan without any defaults.
Sanctioning and Loan Amount
After a thorough background check is conducted by the bank, the loan gets approved. The bank presents the maximum loan eligibility, tenure, rate of interest, EMI, type of loan – floating or fixed, mode of repayment and terms & conditions to the applicant. If the borrower accepts what has been offered to him the process moves ahead to the next step.
Document Verification and Legal Check
After the loan amount is sanctioned, the borrower is expected to provide all the property related documents to the bank. These documents include NOC from legal owners or any other important authority. Banks normally keep these documents with them as guarantee till the complete repayment of loan.
Banks do a background check of the property against which the loan is to be acquired. They physically go and check the market value of the place and determine the amount that has to be sanctioned by the bank for the property.
Registration of the Property
After all, the background checks are conducted and the value of the property is determined, the registration of the property is done between the previous owner and buyer which is stamped by the Registrar. This is a crucial document which is to be submitted to the bank and is imperative for the loan.
Disbursement of the Loan
After all the processes are followed and completed successfully, the bank finally sanctions the loan amount and the lender is expected to submit post-dated cheques. After the successful submission of the cheques, the loan is disbursed as per the sanction letter.
Even though the process was simplified in these steps, the entire period from application to receiving the loan can be quite lengthy and the applicant should be alert at all times and ready with every document. In no circumstance should the applicant produce any kind of false document or make false claims as it could be a bad reflection on the application if the borrower is caught. Follow the rules by the bank and acquire the loan hassle-free.
Now that you have understood the various steps involved in the home loan application process, head over to Finserv MARKETS and apply for a Bajaj Finserv Home Loan with us, today! What’s more? You can get a variety of benefits and additional features that can help you realize the maximum value out of your investment.
“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.”