Buying a home requires a huge amount and for a layman, it is not possible to invest such an amount all by itself, which is why most homebuyers seek the help of financial institutions to avail a home loan.
Prior to banking digitalization, The way of acquiring home loans in India includes various procedures that were complicated and time-consuming for applicants. Now, the procedure for online home loans is not only simple but also fast. Within a few weeks, your loan will be disbursed. Whether or not you will be able to execute your home buying plans will ultimately depend on the evaluation and approval of your home loan application that will be processed by your bank.
Since interest rates on home loans are currently at record low rates (less than 7%), most customers are willing to do real estate investment. The applicant must be vigilant as it is important to get approval for the sum you have requested from the bank as credit. Let’s look at some of the considerations that must be followed by you while your Home loan is being processed.
Make Sure You Are Accessible
Officials of the banks can attempt to contact you on your mobile phone to request confirmation of the many details given in your application form. There may even be a call to ask you to provide extra documents. As part of an applicant’s liabilities, banks also often disclose many hidden fees on home loans that a buyer has to pay. They could send emails as well. Keep your emails updated frequently, as well. So, if the bank officials were to get in contact for something, make sure you do not miss the call or an email. If that happens, the processing of a home loan application can take longer.
Prepare For The Verification Of Property For Legal And Technical Teams
Bank will send two separate teams to complete the most important part of the processing. In order to make their assessment, one member of the legal team and another from the technical team will visit the property you want to buy. The buyer would have to be available at the house they wish to purchase at all these times. They should also make sure that the dealer is available, along with all documentation and payment receipts relevant to the property ownership.
The legal team will ensure that the property has no legal issues, will examine all the original documents, NOC, and ownership papers. while the technical team will evaluate what the market value of the property is, the physical condition of the property, building specifications, etc. They will recommend the bank to process your request only after the legal and technical teams are satisfied with the property and its legal title. If you are not available for these appointments, it will take much longer to process them.
Be Present At The Address Given By You
A check on the applicant will also be carried out by the bank. They can verify the truthfulness of the personal data you have provided. For this, your current address and your office address may be visited by bank representatives. At a designated time, they will make a visit, during which they require you to be present. This is a vital aspect of the processing of home loans and can be easily accomplished, with the assistance of the borrower.
All this is to ensure that the loan falls through the “right” hands and that the borrower has the “means” to pay the debt back.
Inform The Witness About The Home Loan
Banks ask you to include the names, contact numbers, and addresses of two people in your home loan application who may know you well. They mention that these associates are not your relatives in any way. The names of their friends or co-workers are often given by home loan applicants.
Notice that bank officials will separately contact each of these individuals and ask about you and your relationship with them. They can also ask the person about his occupation and address. This means that calls from the bank should be open not only to you but also to your contacts. If even after repeated attempts, the bank fails to contact your witnesses, it will prolong the whole operation.
Inform these witnesses in advance that you have provided the bank with their information in relation to your home loan application and that they should expect a call about the same.
Overall keep the following points in mind when requesting a home loan:
- While the whole process of home loan approval is being conducted, make sure to be available on time at the right place.
- Check your emails from time to time.
- Don’t avoid unknown phone calls as they may be from the bank to know some information.
- Be ready with valid documents and sellers when the legal and technical team pays a visit.
- Inform the people whose name and contact you have given as witness in the home loan application.
- You can fix the time according to your convenience, just be present at the appointed time.
- You can not give the name of your blood relative as a witness.
- Banks typically charge for conducting the technical assessment of the house. This may be part of the processing fee as well.
Once the process has been completed and the loan has been approved you can purchase your dream home and can live a comfortable and safe life.
If you need any information related to real estate, home loan, the realty market, etc. SBP Group is available for you. You can connect with us on our social media and website anytime.