11-Step Guide to Apply for Home Loan in India

November 29, 2022 | Indextapadmin

The feeling of homeownership can’t be explained in words but can be felt emotionally when you hold the keys to your own home. Buying a home is the greatest investment one will ever make in his or her lifetime. But experts say if you are a first-time homebuyer, it's good to be financially comfortable first. And a home loan in India is what helps you afford your new home while also offering you multiple benefits, such as tax benefits that can help you save a lot of money.

Therefore, if you are also willing to buy a home, scroll below for the complete step-by-step guide on home loan for new flat in Mumbai.

• Fill out the Loan Application Form and attach the documents.

The loan application form requires a few personal but essential pieces of information, which include: name, contact details, residential address, monthly or yearly income, educational details, property details, estimated property cost, and current source of financing the home property.

After this, you need to submit valid documents like income proof, ID, age, address, employment, and educational proof, bank statements, and property details on which the loan is applied (if finalized).

• Pay the processing Fee

An applicant needs to pay a processing fee to the bank to maintain their home loan account. It requires some confidential paperwork, which includes IT certificates or a post-dated cheque every year. The processing fee varies between 0.25 and 0.50 percent of the loan amount requested.

• Discuss with the Bank

A bank or a lender cross-checks the documents and sometimes asks an applicant to visit them in person before sanctioning a loan. This step is taken to ensure the applicant’s loan repayment capability and interest.

• Verify the Documents

Be genuine throughout the home loan process because any fraudulent activity is considered a criminal offense. For this reason, the bank evaluates the applicant's documents.

• Approval Process

It's the most crucial step, which requires proper documentation with other eligibility factors, and it's done.

• Offer Letter

After sanctioning the home loan, the bank certifies the applicant with an offer letter that mentions the sanctioned loan amount, interest rate, whether it is variable or fixed, loan tenure, repayment mode, and other terms and conditions.

• Processing The Property Papers, Followed By A Legal Check

Send the bank all of the original property documents. It serves as security for the house loan and remains with them until the loan is paid off. After this, the bank’s lawyer validates the property papers and conducts a legal check to verify them.

• Processing A Technical Check & The Site Estimation

The bank sends a property specialist to examine the construction stage, construction quality, work progress, and further eligibility factors required to give a green flag to the home loan.

• The Final Loan Deal

After all the approvals, it's time to register the property.

• Signing the Agreement

Post all the paperwork and sign the home loan agreement. Here, the applicant is required to submit a post-dated cheque; this step is considered a Memorandum of Execution paid by the applicant.

• The Loan Disbursal

Once everything is legally clear, the applicant needs to submit some documents to the bank as evidence of their contribution to the property, such as evidence of funds if taken from a third party.

In a nutshell, we have detailed the home loan process documents to obtain a home loan to buy new home in MMR or anywhere in India. Irrespective of city or state, the above-listed document checklist for home loan is mandatory all over India.