Step by Step Guidance to Home Loan Application Process

If you are looking forward to buy home with the help of home loan then it is very much important for you to understand the complete application process. You might have multiple doubts or questions related to application process however we tried to cover the most important steps in this article.

There are usually Four Steps involved while going through Home Loan Process. Let's understand them one by one :-

• Application
• Approval
• Sanction
• Disbursal

Loan Application : 

If you had finalized the Lender Bank or NBFC then you can visit their branch or website to obtain application form. Just fill up required details along with supporting documents and submit the application.

If all of your documents are in order and complete then it would not take much longer time to get approval.

Loan Approval :

Loan Approval do not take longer time. It is usually done faster however it majorly depends on few factors like set of all documents are clear and complete or not.

There are few other factors that are considered by Lender Organization like credit score, age, income, amount of loan required, total liabilities, etc. A background check would be conducted by lender to ensure that all details and documents shared by you are genuine.

However after verification process the approval process becomes fast.

Loan Sanction :

It is very important to understand that Loan Sanction amount may vary from the amount you had applied for. It is completely dependent of factors shared above. However the lender may meet you personally to do various questions and checks so that sanction letter could be provided.

Your amount may be less then applied for or even higher depending upon your interview, property value, income and other liabilities. However the sanction letter is usually valid for 6 months hence you need to lock the dream property at earliest when sanction letter is ready with you.

Loan Disbursal :

This is the last and final stage of loan application process. t this stage, you will be sent the loan documents to be duly filled in and signed by you and any co-borrowers, co-owners, and co-applicants. Before the loan amount is disbursed, you will have to submit the down payment, which will depend on the Loan-to-Value ratio of your home loan. This can go up to 20% of the cost of the property.

You will also have to provide the property documents which will be legally assessed by the bank or financial lender. These documents may include the property’s title deed and the NOC. After this, your loan amount will be disbursed to you and you can then make your dream home your own.