We are buying a new property. What is the procedure to apply for a home loan?

Applying for a home loan process can seem a little intimidating, but it is not that difficult these days. These days, it has become quite easy to apply for a home loan. Before we see how to apply for the home loan, let’s take look at the documents required: 1. Income proof 2. Identity (or ID) proof 3. Age proof 4. Employment details 5. Educational proof (school/diploma/degree certificates) 6. Bank statements 7. Property details on which the loan is applied (if finalized) Proceeding, here are steps for applying for home loan: Fill The Loan Application Form & Attach The Documents Fill in the details like name, phone number, residential address, yearly income, educational information, property details, estimated cost of the property and so on. Pay The Processing Fee After submitting the application and documents, you will have to pay a processing fees to the bank. This is usually from 0.25 % to 0.50 % of the total loan amount. Valuation Of The Documents The bank thoroughly examines all the necessary documents like residential address, employment record, credit score, and so on. The clearer the documents, quicker will be the process of approval. The Sanction/Approval Process Once the validation of the documents is done, your loan request will either be accepted or rejected depending on the verification of these documents. The bank mainly checks if you repay the loan amount with the set interest rate within the given time. Processing The Offer Letter After the approval, the bank will send you a certified offer letter that mentions the amount of sanctioned loan, the duration of home loan and so on. Processing The Property Papers Followed By A Legal Check Next, the bank will do a deep check of the property papers. The bank will ensure that there is no issue from you or the builder that will hinder on the repayment of the home loan. The Final Loan Deal Once everything is checked, you and the bank will further proceed for the final loan deal wherein the technical and site estimation is confirmed. This is the final step for registration of the loan. Signing The Agreement After all the checks and approval, the applicant has to sign the loan agreement. You need to submit the property papers as well for the security, safety and proof The Loan Disbursal At last, after all the signing process and submission of the documents including the partial payment of the total amount, the loan will be disbursed to the applicant.