The step by step process of a Home Loan is as below:-
Step 1 – Identify the home property you intend to purchase.
Step 2 – Search for the best home loan deal that can fulfill your requirement in terms of loan amount, loan to property value ratio, interest rates & other charges, turnaround time etc.
Step 3 – Determine your Home Loan Eligibility – This differs from lender to lender and depends on various factors like your age, income, profile, past credit performance etc.
Step 4 – Apply for Loan by filling the application forms of the lender and provide all requisite documents.
Step 5 – Verification/Credit Appraisal Process – The lender will verify the information and documentation provided along with checking your credit history. The lender can also ask for additional documents.
Step 6 – Legal Document Checking & Valuation – The lender checks the property documents for ascertaining the authenticity. The lender also gets an independent valuation for the property which determines the loan amount.
Step 7 – Eligibility calculation and Loan Sanction – Post verification and credit appraisal process, lender sends an offer letter with details like loan amount, tenure, rate of interest and other terms and conditions.
Step 8 – Accept the terms and conditions of the Sanction Letter before proceeding to the next step.
Steps 9 – Sign the Loan Agreement and provide repayment instructions.
Step 10 – Disbursal of Loan.