Thursday, 4 October 2018

Process of availing a home loan | What is the process of home loan?

Are you looking for a home loan but don't know where to start?

If yes, you have reached the right place.

Every person has a dream to have a house of his own. But with time the prices of houses increase rapidly and in such a situation it seems impossible for a middle-class person to take home.  But a home loan can be a very good option for buying a home.



Process of availing a home loan is very easy. You can do it from home. Most private banks provide you with doorstep service.

You need to first decide which bank you want to apply for. You can do research through the internet or call up the call centres of banks or inquire online on their websites. Also, you can take advice from any of your friends, relatives or colleagues about their opinion on where you should be applying for the home loan.

Once you have decided where to apply, you can get in touch with that bank for the application of home loan. 

You need to submit all the necessary documents (required as per the lending policy of the bank) along with the application form to the bank. You also need to give a cheque of processing fee along with your home loan application.

Generally, the following are the documents that you need to submit while making an application for a home loan-

For salaried borrower -
1. Last 3 months' salary slips
​2. Last 6 months' bank statement
3. Latest Form 16
4. Pan Card 
5. Address Proof

For Self Employed Borrower -
1. Last 3 years' Income Tax Returns
2. Last one year's bank statement
3. Pan Card
4. Address Proof

The self-attested photocopies of above-mentioned documents should be submitted along with the home loan application form.


On submission of the above documents, the bank will conduct verifications of your current residence and office. They will also do other internal checks like generating your cibil report (credit report), verifying whether documents provided by you are genuine or not etc. 



Post this, they will have a personal discussion/interview with you. During the interview, they will study your profile in detail as to how many members are there in your family, no of family members dependent on you, what are your current obligations, etc.

After doing the personal discussion and after having gone through your documents, if they are ready to sanction your loan, they will issue a sanction letter to you. 

The sanction letter may have certain conditions which you need to fulfill before you get the disbursement cheque of your loan. 

You are advised to go through entire sanction letter thoroughly so that you know exactly what are the documents to be submitted and formalities to be completed by you before you get the cheque of the loan amount.



Post this you need to submit all the required property documents to the bank. Generally following property documents are supposed to be submitted-

In case of purchase of the property from the builder-
1. Original Registered Sale agreement between the Borrower and the Builder along with original stamp duty and registration receipt
2. Original NOC from the Builder. The NOC should be in the bank's format
3. Original stamped receipts of payment of own contribution of the borrower  (The receipt will be issued by the Builder)

In case of purchase of a Resale Property-
1. Original Registered Sale agreement between the Borrower and the Seller along with original stamp duty and registration receipt
2. Original NOC from the Society The NOC should be in bank's format
3. Original stamped receipts of payment of own contribution of the borrower  (The receipt will be issued by the seller)
4. Original Share Certificate of the property


They will check whether your property has a clear & marketable title and will also do valuation of the property.

After valuation and title check, you need to sign loan agreement & other disbursement documents and then take the cheque of disbursement. If the property is underconstruction, the disbursement (payment) of the home loan will be done in parts as per progress of construction work of the building.

This is broadly how you can get a home loan. This process flow may differ slightly based on the bank where you apply and the type of property you are buying.

11 comments:

  1. Only aspire to mention ones content can be as incredible. This clarity with your post is superb and that i may think you’re a guru for this issue. High-quality along with your concur permit me to to seize your current give to keep modified by using approaching blog post. Thanks a lot hundreds of along with you should go on the pleasurable get the job done. with a 650 credit score mortgage

    ReplyDelete
  2. This article was written by a real thinking writer. I agree many of the with the solid points made by the writer. I’ll be back. apply online home loan in lahore - Apply online Personal Loan in Rawalpindi

    ReplyDelete
  3. Really helpful information. I was looking for an idea how to get loan for home so, finally i got it. After getting the loan now i will visit best property listing website and find a house according to my needs. Thank you mate and keep posting. house for sale

    ReplyDelete
  4. Thanks for the valuable information and insights you have so provided here... click for complete info

    ReplyDelete
  5. I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information. KRM.net.au

    ReplyDelete
  6. Extremely helpful post. This is my first time i visit here. I discovered such a large number of intriguing stuff in your blog particularly its exchange. Truly its extraordinary article. Keep it up. Rain Gutters

    ReplyDelete
  7. Thanks for sharing such an interesting post,this was really helpful for me.For Home Mortgage Lenders California

    ReplyDelete
  8. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: https://prizebondlucky.net

    ReplyDelete
  9. With the approach of increasingly more forte banks and the ongoing spotlight on streamlining the SBA application process, 504 loans are not any more required than most standard business loans.3monthloanlenders.com

    ReplyDelete
  10. This is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work. instagram followers free trialThis is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work. instagram followers free trial

    ReplyDelete
  11. This is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work. silk bank personal loan calculator - personal loan calculator hbl

    ReplyDelete