Buying a new home is a crucial decision in every family’s life. The financial burden of a new house cannot be met without a loan in most cases. Sadly, many people do not have proper knowledge of the home loan process, which could lead to pitfalls. Here we present a brief overview of all one needs to know.
The loan process will begin by applying for the home loan. The application form will require genuine personal, educational, and employment details including the desired loan amount, details of the property, and means of finance. Appropriate documents are also required to be attached. One has to pay a non-refundable loan processing fee, which is about 0.25% of loan amount. After this, the bank processes the application and does a background check on the applicant to know about his repayment ability. This personal meeting has the sole purpose of verifying the information provided by the applicant. After this, the repayment ability is assessed. If the bank is certain about the applicant’s repayment ability, the loan can be granted. The offer letter of loan will contain details about loan amount, tenure, interest rate and other terms. The letter has to be signed by the client and then property verification is done. The title deeds and NOC have to be submitted to the bank. The last