All You Need To Know About Home Loan Process
Nowadays, without the full support of a home loan, most of our dream of buying a new home has remained an only dream. Once you go to buy a new home, you are to initiate the process of the home loan. Nowadays, a home loan has become a financing tool to buy a home. A home loan is a secured loan and consists of several stages. Typically, a new home loan takes a minimum of fifteen days to get disbursed. Therefore, both the borrower and the lender have to come through several stages to reach the final stage which is the disbursement of home loan. You should always check your monthly EMI with a home loan calculator before applying for a home loan.
Here, we have mentioned all the information about the home loan process.
Step By Step Guide To Home Loan Process
Applying for the Home Loan
The first stage of a home loan is to apply for a home loan. However, the loan application may differ from lender to lender. Here in the loan application form, you have to provide professional information and personal information, details of your financial liabilities and assets and if you have chosen a property then the information of the same.
The next stage of a home loan is to assess the home loan or check the eligibility of the home loan. Generally, lenders check several things such as:
- Age
- Existing Liabilities
- Income
- Verification of job
- Credit score
- Repayment Capacity
- Credit report
- No of dependents, etc.
Legal Verification
If the bank finds that your loan is worth taking, then the lender will proceed to legally verify the property you want to buy. The lender will send a good lawyer to have a legal verification of your property. Thus, if the bank lawyer finds that your property is the best one to invest in, the bank will be provided with a legal conversion report.
Valuation of the Property
After that, the next step is to discover the fair market value of the property. Then, lenders send the best experts to the site to evaluate the value of the property. This step is taken by the lender to ensure that the suitable home loan amount is sanctioned against the property.
Sanction of the Home loan
The next step is the sanction of the home loan after the successful completion of the preceding three steps. Acceptance of a home loan indicates that you are ready to sign all home loan contracts. If your home loan is approved then you will have to start the process of registering in your name.
Registration of All the Property Documents
In this step, you have to register the property at the official of the sub-register of your city. At the time of property registration, you have to pay the fees of property registration and stamp duty to the Government of India.
Home Loan Disbursement
Finally, once all legal procedures are completed, the home loan amount will be disbursed through check or demand draft to the seller of the property. For this, the seller has to provide all the necessary property papers to the bank. This means that the sale deed or agreement and mother deed will be in very high custody of the bank until the repayment is completed.