For most individuals, purchasing a house is one of the most important investments they will make throughout their life. In most cases, home loans are a necessity in the purchasing process. While the home loan approval process has many steps, it does not need to be overly burdensome or complicated. Learning about these steps can ease the process and enable you to have your loan sanctioned in a timely manner. At Today Finserv Consulting India, we work to ensure that an informed borrower becomes an enabled borrower.

Eligibility Check and Loan Pre-Approval

Out of the many steps in the home loan approval process, the most basic is evaluating your eligibility. Just like other lenders, we gauge your profile on:

• Age
• Income
• Employment type (self-employed or salaried)
• Credit history and CIBIL score
• Any existing debts
• Value and location of the property

As per the norm, banks claim to have a home loan eligibility calculator on their websites that provide ready estimates of the amounts you qualify for, based on income and several other parameters.

Pre-Approval

A number of lenders provide a pre-approved loan facility depending on your affiliations with the bank (such as a salary account or usage of credit cards). This gives you an approximate loan amount and interest rate which assists you in planning your other expenses in a more streamlined manner.

Application Submission

After confirming eligibility and selecting a lender, the following step is to submit your home loan application. This involves filling in the loan application form and providing relevant documents such as:

• Proof of Identity and Address Documents
• Income Documents (salary slips, Form 16, taxes for self-employed)
• Property Related Documents
• Bank Account Statements
• Employment Details

At Today Finserv Consulting India, we assist you with the required documentation so that your application is accurate and hence, does not face any unnecessary delays.

Document Verification and Processing

Post submission of the application, the lender’s verification team cross-checks your documents against the stated identity, income, credit, and property claims provided with the loan application.

Income Verification: Evaluation of a borrower’s ability to pay back a loan.

Credit Check: Evaluation by the lender of the applicant’s credit report from credit bureaus, checking CIBIL score, and available credit history.

Property Verification: Evaluation of ownership, valuation, and legal clearance of the property by experts or third-party agencies.

This fee may be charged during this step to account for the administrative costs incurred during document verification and evaluation.

Sanctioning the Loan and Issuing an Offer Letter

If the application along with the submitted documents, complies with the requirements of the lender, the loan proceeds to the sanctioning phase. Here, the lender will assess the loan amount you are eligible to receive, considering your eligibility, property value, and overall credit profile.

The borrower will be sent a Loan Sanction letter which will contain the details of:

• Granted loan amount
• Interest rates along with type (fixed or floating)
• Tenure of the loan
• Estimated Monthly Payments (EMI)
• Terms and conditions of the contract
• Sanction letters must be read, and in case of acceptance, the borrower needs to sign it in order to proceed to the next stage.

Legal and Technical Verification

Once the loan is disbursed, the lender will carry out detailed legal and technical verification of the property which include:

• Property title and ownership documents,
• Encumbrance Certificates,
• Check for any legal disputes or outstanding loans relating to property.
• Professional surveyors must also examine the property structurally to assess its condition, and estimate its value.
• The purpose of this step is to ascertain that the property has no legal encumbrances, and that it will serve as adequate collateral for the loan.

Loan Agreement and Disbursement

After your application has undergone all the required legal and technical verifications, you are required to sign the loan agreement. This document specifies your obligations, the lender’s requirements, repayment plan, and default penalties.

Subsequently, the loan sum is disbursed either in full or in parts, depending on whether the property is ready or still under construction.

Repayment and Loan Closure

You start servicing the loan by making the agreed EMIs. You may also choose to make prepayments or part-prepayments to lessen the financial strain sooner. Once all payments have been made, the financial institution will issue a No Objection Certificate (NOC) and remove the charge on the mortgaged property.

• Strategies for Faster Home Loan Approval
• Keep up the good work with your CIBIL score: Having a 750 or higher makes approval more likely and faster.
• Make sure that all documents submitted are complete and correct: Delays can be caused by missing documents.
• Do not change jobs during the period when you are applying for the loan: Job stability is good for lenders.
• Pick a property that already has a completed title and approval: Smooths legal verification.
• Rely on Today Finserv Consulting India’s specialized services: We assist you from start to finish, from documentation to negotiating with lenders.

Primary Reasons Why Home Loans Are Denied

• Having a low or unstable income
• Making costly mistakes with your finances
• Missing, falsified, or inaccurate documents
• Properties that have legal disputes or unresolved issues with ownership and legality
• Having a high amount of existing debt
• If your loan application gets denied, remember not to lose hope. Learning the reasons provides the opportunity to fix issues and address them in the application.

Why does Today Finserv Consulting India stand out?

Going through the home loan approval procedures is certainly not easy. With the right help, it can be simple. As Today Finserv Consulting India, we offer:

Tailor fit eligibility evaluation

Assistance in appraisal and document verification

Interest rate and loan term negotiation

Undue loan processing

We guide our clients throughout the terms of the loan to ensure that they enjoy the journey of acquiring their home loan.

Final thoughts

The steps in the process of obtaining a home loan include prequalification, application, review, and funding. Being armed with all necessary papers alongside understanding the requirements set by lenders as well as being financially responsible will optimize chances of fast and positive responses on approval.

At Today Finserv Consulting India, we’d be more than happy to provide you assistance, whether you’re looking to purchase a new home or refinance an old loan.