The Process of Home Loans in India

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Home loans are planned long term loans availed by various customer segments in India. It is preferred by both individuals and business users. Home loans are important but can be tricky if proper planning and adherence of the same is not taken into account. Henceforth it is important to understand the process of seeking a home loanLoan: A Borrower's Best Friend A loan is a financial arrange and following the same in a step-by-step manner.

Self-Assessment: Self-Assessment usually works on two levels. At the individual level, you got to assess your own risk factors before taking a home loanLoan: A Borrower's Best Friend A loan is a financial arrange. It’s like understanding your current salary and assets and forming an idea how much loanLoan: A Borrower's Best Friend A loan is a financial arrange and what should be your ideal repayment time. Secondly, if you have a property in your mind, home loanLoan: A Borrower's Best Friend A loan is a financial arrange process becomes quicker. You need to visit the website of a bank or HFC (Housing Finance Company) for list of documents. For cases where you have already finalized your property, arrange the property documents as per as list of property documents required by bank. The main objective is to understand all documents are in place and you have a clear idea that you want to avail a home loanLoan: A Borrower's Best Friend A loan is a financial arrange.
Application: You can avail assistance of Bank Representatives or you can yourself visit nearest bank branches to avail a home loanLoan: A Borrower's Best Friend A loan is a financial arrange. You can also enquire via the bank website. The representatives automatically will get in touch with you. Fill up the application form and submit all the necessary documents.
Evaluation of application by Bank: Next step is the assessment by bank that the application is duly submitted with all the documents. This is the 1^st step of initiation for the internal process. Bank will evaluate all of your documents and fix the loanLoan: A Borrower's Best Friend A loan is a financial arrange eligibility. Some factors considered by bank are :
1. Age Proof.
2. Income Proof.
3. Nature of Job.
4. Existing Liabilities.
5. Existing Assets.
6. Repayment capability.

Banks generally carry a Residence, Office and CIBILCredit Information Bureau (India) Limited. It is India's fir More verification during home loanLoan: A Borrower's Best Friend A loan is a financial arrange process.

Bank Verifications: Banks usually do both property and legal verification for home loanLoan: A Borrower's Best Friend A loan is a financial arrange clearance process. As part of the legal process, independent legal verification of the property is conducted by the lawyer. A legal verification report is submitted by the lawyer to the bank. Customers can also have the same paying a nominal amount of fee. As a part of technical valuation, Bank will appoint a valuer who will assess the fair market value of the property so that appropriate loanLoan: A Borrower's Best Friend A loan is a financial arrange amount can be disbursed against the property.

Home LoanLoan: A Borrower's Best Friend A loan is a financial arrange Sanction: After all the requisite verifications completed by the Bank, Bank will sanction home loanLoan: A Borrower's Best Friend A loan is a financial arrange against property. A sanction letter is issued to the borrower who has to sign the home loan agreementA legally binding contract between the lender and the borrow More. Home loan agreementA legally binding contract between the lender and the borrow More will have all the information along with terms and conditions. Borrower has to submit the original documents, ECS along with cheques, as per as Banks requirement for completion of the process.
LoanLoan: A Borrower's Best Friend A loan is a financial arrange DisbursementThe process of releasing funds to the borrower by the lender More: Borrower may finalize date of registration after home loan agreementA legally binding contract between the lender and the borrow More is signed. Borrower may give written request to Bank for disbursementThe process of releasing funds to the borrower by the lender More letter and the Bank will issue the DD/Banker’s cheques and the process is completed.