In India, buying a house is a dream for many, and numerous professionals in India aspire to one day own their property. An owning a house not only provide financial security, but also offers long term investment benefits. But, it is the ever-increasing house prices that push the need for seeking a loan even further. Seeking Today Finserv Consulting India enables thousands of home buyers apply for a loan.

Analyze Your Financials

There are a set of tasks to check your finances, however before beginning the steps to apply for a home loan, it is necessary to check the following financial requirements:

Select a range that you would wish to purchase a house in.

Identifying the funds you would like to take.

Assessing monthly financial commitment vis-a-vis your income so that repayment becomes achievable.

Finally, it is recommended to use free tools of a home loan EMI calculator which enables you to visualize the value you would be comfortable spending each month. These steps ensure a person does not borrow beyond their means, neither does one set unrealistic targets for themselves.

Verify Your Eligibility Criteria

All banks and financial institutions have specific requirements that must be met in the course of home loan approval. While these parameters vary from institution to institution, the following factors are generally key attributes:

• Age: 21 to 65 years (when the loan is maturing)
• Income: The minimum monthly income acceptable differs from lender to lender
• Employment: Paid employees with a long-term job or freelancers with a stable business
• Credit Score: A CIBIL score of 750 is ideal for most banks
• Existing Liabilities: Ongoing EMI payments, loans currently available which may hinder the repayment ability

At Today Finserv Consulting India, we not only help you analyze the eligibility criteria but also assist you in evaluating multiple lenders to help you find the most suitable offer.

Evaluation of Home Loans

Now that you are privy to the eligibility criteria and parameters, the next step is to start comparing the actual loan parameters for evaluation such as:

• Interest rates whether fixed or floating
• Processing fee
• Duration of the loan
• Charges for prepayment or foreclosure
• Facilities pertaining to balance transfers

According to experts, every single percentage difference in interest rate can drastically change the final repayment amount and as such, should be factored in heavily. It is imperative that all fees, not only the interest, are closely inspected for inclusion in evaluation purposes.

Today Finserv Consulting India provides comprehensive evaluations for mortgages from places such as SBI, HDFC, ICICI, Axis Bank, and many more enabling clients to receive tailored comparisons and suggestions from specialists through the newest technology.

Gather Required Documents

A distinct set of documents is necessary to process the client’s home loan application. The documents required are as follows:

For Salaried Individuals

• Proof of identity (Aadhaar, PAN card, Passport, Voter ID)
• Proof of address (Utility bill, Aadhaar, Passport, etc.)
• Salary slips from the last 3 – 6 months.
• Latest Form 16 or Income Tax Returns (ITR).
• Last 6 months Bank statements.
• Employment certificate
• Property documents (Agreement to Sell, Sale Deed, etc.)

For Self Employed Individuals

• Business proof (registration, license)
• Professional (2-3 years) Balance Sheet and Profit and Loss Account.
• Recurring: ITR of the last 2-3 years
• Bank Statements: personal + business
• Identity and address proofs.
• Proof of property ownership.

Nowadays, Finserv aids you to arrange and verify the documents which lowers the chance of rejection.

Fill Out the Application Form

After the lender is selected, the client must fill out the home loan application form. It can be done either online or in the bank branch. The form typically asks for:

• Personal Information (name, age, and contact number)
• Details of Employment and salary
• Property Information
• Now, the user specified loan amount and tenure.
• Double-check every information provided to ensure accuracy. All information needs to be consistent with the documents provided.

Payment of the Processing Fee

Most lenders set a processing fee between 0.25% and 1% of the total loan amount, which accounts for the administrative work involved in processing the application. This fee is not refundable, regardless of whether or not the loan is approved.

Application Evaluation and Credit Scoring

The bank commences a detailed evaluation that includes the following steps as soon as it has received your application and supporting documents:

• Document verification
• Comprehensive business/employment background check
• Credit rating assessment
• Evaluation of repayment abilities

For further validation, the lender may also conduct an in-person or telephonic interview with the borrower. The lender proceeds with property verification and legal due diligence, which is either physical or virtual.

Granting the Loan

Granting the loan If the bank is satisfied with its appraisal, it issues a sanction letter containing the Connected sanctioned loan amount

• Interest rate and type
• Tenure
• EMI amount
• Terms and conditions

The latter must be signed and sent back together with the letter for surrender.

Verify the Property and Conduct Legal Review

Banks are required to carry out a technical and legal check of the property before releasing the loan. The check verifies that the property is legally owned and complies with local regulations.

Some banks might also hire a third party property verifier to check the market price of the property.

Loan Signing and Distribution

You are expected to do the following after completing all the processes to the bank’s satisfaction:

Append your signature in the loan document
Hand over either post-dated cheques/ECS mandate for EMI payments, or cheques
Present the original documents of the property as collateral.

Following the procedures mentioned, the loan amount is either paid in full (when the property is finished) or in phases (for properties still being built) depending on set milestones in the building’s progress.

Professional Tips from Today Finserv Consulting India

Keeping Optimum Credit Score: Ensure timely payment for all EMIs and credit card dues.

Do Not Apply for Many Loans at Once: Each application may negatively affect your credit score.

Select the Most Suitable Loan Duration: Longer loan duration decreases the EMIs but increases the interest.

Negotiate For Improved Conditions: Offer better rates in return for being of sound credit standing.

Foreclosure rules, clauses regarding loan interest resets and other reset clauses should be brought to attention as fine print.

How Today Finserv Consulting India Can Help?

Considering the number of lenders, terms, and eligibility criteria, applying for a home loan can be quite tedious. However, at Today Finserv Consulting India, we make this process easier by:

• Evaluating your eligibility for the given loan
• Analyzing competing offers from various lenders
• Assisting you in gathering and validating the required documents
• Submitting, monitoring, and managing your application
• Best negotiating interest rates and terms
• Offering post-loan assistance

Our specialists customize solutions for every client so that there is no added stress that comes with home financing, whether it is your first time buying a house or looking to refinance an existing loan.

Final Thoughts

As long as the necessary procedures are completed step by step and with up to date information, obtaining a home loan does not have to be overly difficult. It is only complicated without the right pointers that help secure the mortgage aligned with key financial milestones set by the buyer, such as moving into their dream house sooner than they thought.

Would you like to apply for a home loan? Simply reach out to Today Finserv Consulting India and book a complimentary consultation for bespoke support.