Home Loan Process – A Complete Guide by
Rohini Housing – Trichy

The excitement of buying a new home is unmatchable. It is a dream to own a beautiful house for many of us. When the time finally arrives to buy one, you have a lot of options to make the payment.

The best way to buy a house is through a home loan. There are a lot of benefits to purchasing your dream house with a home loan. But how to apply for the loan and what is the process?

In this blog post, we will be deep diving into the complete process of getting a home loan and discuss the benefits of buying a house with a home loan.

How should home loans be applied for and processed?

The Home loan process consists of the following steps:

• -  Applying for Loan in a bank
• -  The bank processes and verifies the application
• -  Approving the Loan and Disbursal

Applying for Home Loan in a Bank

Banks are safe and secure when you are trying to approach for a home loan. When you try to get a home loan, you must approach the bank and they might assign you an agent to help you out.

This agent will give you an application form and a list of documents you have to submit. In most banks, these are the required documents you have to submit:

• -  Identity Proof
• -  Address Proof
• -  Employment Details
• -  Salary Certificate
• -  Bank Statement with Credited Salary
• -  Details of the Home you are going to Buys

You have to get a salary certificate from your employer to assure your monthly income. Also, you have to get an account statement for at least six months to affirm your salary being credited.

Along with it, if you have finalized the property you are going to buy, then you must provide the following details:

• -  Physical Area of the House
• -  Location
• -  Building Plan approved by relevant authority

Once you have submitted all these details along with the application form, the bank agent will submit these to the loan processing section in their bank. You also have to pay a fee for processing your loan application.

Processing and Verification of the Documents by Bank

Every bank has a separate department to process the loan applications. They go through all the documents and applications before proceeding further. This usually takes one or two weeks provided that you have submitted all the documents perfectly.

The first thing the bank may check is your CIBIL score. You must have a higher CIBIL score for your bank to process further.

Then, it checks your salary and finances. It verifies your employment details and may even check it with your employer through a phone call or personal visit.

After verifying your financial status and employment, it will verify the property you are going to buy. The bank will go through the locality, size of the building, approved plan, and other related documents. With this information, it will decide the net worth of the property.

The bank will also assign an Engineer to physically check up on the property. The engineer will measure the house and submit an estimate of the net worth.

Your bank will also demand the documents of the property like the mother documents, EC, etc. These property documents will be sent to a lawyer by the bank for legal verification.

With all this information, the bank will decide on a loan amount and approach you for further steps. The agent will contact you regarding the process and ask for your approval to proceed.

Approving the Loan and Disbursal

If you are satisfied with the loan amount you can accept it and the bank proceeds further with the approval. If not, you may ask for a higher amount and the bank may consider it.

Once the amount is finalized, you have to choose a repayment scheme. The benefit of a housing loan is that you can have a longer repayment duration at your convenience. But remember to check up on the interest rates too.

After choosing a repayment scheme, the loan processing department will approve the application and proceed with sanctioning.

After sanctioning, it will give you a letter that contains the following details:

• -   The total Loan amount and the interest rate
• -   Tenure for repayment
• -   Terms and conditions

You must accept the sanction letter and sign it for approval. This will be considered an acceptance from your side.

Then, you must proceed to legally register the property from the owner. You can show this sanction letter as proof to the seller and prepare the documents for registering the house in your name.

At the time of registration, the bank will provide a cheque on the loan amount in the seller’s name. You can give it to the seller and complete the registration process.

After registering the house, you have to submit these original documents to the bank and register a MOE (Memorandum of Execution). This MOE will enable the bank to hold your property until you fully repay the loan amount with interest.

The loan is disbursed, and you must start paying it every month as per your repayment scheme. This is the complete process of getting a home loan from a bank.

Benefits of getting a home loan

Getting a home loan for buying a house has many perks. We have mentioned some of the major advantages:

Tax Deduction – You can reduce your income tax by showing the monthly loan repayment. The government of India deducts up to 1.5Lakhs per financial year. This will be helpful for you to repay easily.

Pay early without charges – You can make a part payment of the principal amount before the completion of tenure without any charges.

Longer tenure – You can choose a scheme with longer repayment tenure which is not available in any other scheme. This will reduce your monthly dues and you will be able to choose a scheme comfortably.

Avoid Paying Rent – Instead of paying rent, you can pay the due amount and stay in your own house.

Conclusion

There are several reputed financial institutions offering home loans in Trichy. Own a house right away with the help of a housing loan from your bank. Make a smart real estate investment in Trichy in Trichy. Follow this procedure and get your home loan sanctioned without any delay. Avoid rent and start living in your own home.

Need Assistance in Buying a Property? Ask Rohini Housing.