Are you planning to purchase a new home with a home loan? When you apply for a home loan, lenders will check and re-check your eligibility and documentation before granting you home loan sanction and disbursement. They will ask for some relevant documents such as address and identity proofs, bank statements, PAN card copies and your housing purchase agreement. So, start arranging those documents.
But, before you apply you must be aware of the entire process of home loan approval, application, sanction and disbursement. Have a look at below points to know the process:
Lenders will Check your Details
As mentioned earlier, lenders will check your credentials and background to determine whether all information is provided or not and whether the details are correct or not.
Have a One-on-One Interview with Lender Representative
You will have to face a personal meeting with lender and explain the purpose of applying for a housing loan. They will verify your income, age, job consistency, monthly expenses, and more before loan approval.
After this verification, your loan application is approved, and the following steps of disbursement will continue.
Paperwork will Start
Do Down Payment
You will have pay at least 20% of the value of the property as down payment. The rest can be taken as a loan. The higher the down payment, the lesser will be the loan principal and loan interest.