How to apply for home loan?

Now that you are well aware of the types of loans and EMI options and have decided on the one that’s best suited for you, let us take a look at the procedure to apply for a loan. It is fairly simple and quick:

Step 1: Submission of loan application form with relevant documents.

Step 2: Verification of the respective property and its supporting documents. This step takes 5 to 7 working days.

Step 3: Around the 7th day, the loan is sanctioned, if all criteria are met and documents are in place.

Step 4: Original property documents to be submitted, followed by which the loan agreement is signed.

Step 5: The loan cheque is disbursed in 10 to 15 working days.

The important documents to be submitted for approving the home loan are:

•Identity proof

•Residential proof

•Properly filled loan application form

•Photograph

•Sale agreement

•Last 6 months bank statement

•For business applicants documents describing the type of business, and IT returns.

•For salaried applicants last 3 month’s salary slips and From 16A.

Costs incurred while applying:

For a Home Loan, the basic registration charges, transfer charges and stamp duty costs are added to the cost of the home.

Some other charges include:

•Processing charge or booking fee – paid to the lender when you apply for the loan. It could be fixed or a percentage of the loan amount.

•Pre-payment penalty – if the loan is repaid before the agreed duration, some lenders may charge a penalty, up to 2% of the amount pre-paid.

•Miscellaneous costs – there could be a documentation or legal fee, also known as “application fee”.

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