Preparing to take Home Loan – What steps should I take?

Majority of the people today need a home loan to buy a property of their choice. Unlike a few years back when the prices of the real estate properties were not costly, one could have managed to purchase a property with their own savings. Today, however, in the purview of the rising cost of properties most of the salaried people find it necessary to avail home loan.

If you have decided to buy a residential property, you need to have a proper plan in place and make certain preparations before procuring home loan. You need to get all the documents ready related to the property you wish to buy well in advance before you approach the housing finance company. Apart from the home documents, you need to submit your personal profile including the details of your permanent and current address, family background, age, income details. All these piece of information would be required by the housing finance company.

The lending institutions in India carefully evaluate the documents that reflect your source of income as they use it as a yardstick to determine the maximum amount of loan you are eligible for. If you are a business owner or if you a self-employed professional, you need to provide details of your business profile, nature of business, and statement of accounts for the last 6 months, copy of income tax returns filed for past 3 years and copy of form 16.

Scrutiny of application form by the housing finance companies

When you submit the home loan application to the lending institution, the lenders initiate a process to scrutinize the documents submitted by the borrower. The lending institution usually appoints a special team to validate the authenticity of the documents. Once the lender confirms the documents, the officer in charge responsible for sanctioning the loan decides on the loan amount that would be forwarded. 

Once the housing finance company approves the loan, you would need to submit the original documents related to property and memorandum of home loan. When you submit the documents, the lender would issue you a cheque for home loan.

What should you ask the lender?

Before you sign on any document it is important that you ask the lender about the rate of interest, the nature of interest (if it is fixed or floating), what is the processing fee, if there is any penalty for prepayment or late payment of the EMI. You must also ask the lender if there are any hidden charges involved. 

If you follow the above guidelines the process of availing home loans would become much easier for you. Not to mention, if you are availing home loans from Indiabulls Housing Finance Ltd, you can be assure of full support from our team.