Buying a home is a once-in-a-life decision which most of the people wait for a lifetime to take. They don’t go for buying a home all of a sudden as the price of real estate properties is higher and their income and savings can’t afford it. However, the facility of the home loan available by a majority of banks and non-banking finance companies (NBFCs) has made things simpler. Yes, if you have the required home loan eligibility, you can get a home loan as higher as up to Rs.3 crore.
Applying for a home loan comprises of 3 major steps: the home loan application and approval, sanctioning of the amount and of course the money disbursement. This post will help you know about the Home Loan disbursement process and more so that you know what it takes to get a loan amount in your bank account.
After you apply for a housing finance, your home loan applicant gets reviewed and approved by a lender. Then, the property and documents verification takes place. If there are no issues, the loan gets easily sanctioned. Finally, your desires home loan amount gets credited to your bank account. The home loan money disbursement may take up t0 72 hours in the cases of most of the prominent lenders.
How Much Loan Amount You Can Get?
Your overall home loan amount or limit will be determined by some factors such as your age, professional consistency, income, and repayment capacity. If you have any outstanding debts on your credit card along with Credit Score will also affect the sanction of the home loan amount. All home loan borrowers should also keep in mind that the final sanction of the home loan may be lower than your desired figure. Once the loan sanction process is complete, you will then receive a confirmation letter.
The validity of the home loan sanction letter will be six months. The letter is proof that you are eligible for the home loan and does not mean you will money instantly. Another thing worth noticing is that the loan might get delayed if there is an issue with the loan application.
Here is everything that makes the most of the home loan sanction process:
1) The Documentation – checking your documents properly will be the first thing that the lender will do. You should provide the lender with your home purchase agreement, identity, address, and income proofs, bank statements, and PAN Card copies.
2) Background Check – To confirm whether or not you provided your lender with the correct personal information, there will be a background check. Thus, ensure to provide only what is relevant to avoid rejections.
3) Personal Interview – Lenders may schedule a meeting with you to better understand the loan purpose. They may ask about your age, job expertise, monthly outlays, and income before sanctioning the loan.
Once you get the loan sanction from a lender, the next thing is the loan disbursement process, have a look:
1) The Paperwork – At this stage, you will need to sign and submit your home loan documents which you will receive. Also, you will need to submit your property documents for further processing.
2) The Down Payment – You will need to pay at least 20% of the total cost of your home as the down payment before getting the loan money. The portion of the down payment may vary from lender to lender.
3) Legal Checking – The loan creditor will also demand a legal assessment of the property documents that you furnished, such as the title deed and NOC.
The Bottom Line
The loan sanction process and home loan disbursement process is that not difficult as it sounds and you will get the loan if you are prepared well in advance. Looking for a home loan, you should also check RBI guidelines for Home Loan. Top NBFCs have some attractive pre-approved deals on home loans, personal loans more. You can unlock such offers by sharing some basic details.