Home Loans

Home-loan-interest-2In metro cities most of the home buyers are the working professionals. This class of people are high earners and are mostly self-made people. Thus they do not have huge funds at disposal but are capable of earning big bucks. To fulfil their dreams of owning a house, they usually turn towards financial institutions to fund their dreams. Banks and other financial institutions often extend loans for longer durations. The tenure though depends on creditability and the financial institution; usually longer term loans are taken.

Banks or financial institutions have 6 major steps before lending. They are as follows:

  1. Submit the loan application form with all required documents.
  2. Loan application would be assessed based on multiple rules of eligibility and funding norms.
  3. Credit appraisal of your income, property valuation and property title check will be carried out by the financial institution to determine the loan amount.
  4. Based on the internal and regulatory guidelines, bank would decide upon approval or rejection of the form.
  5. If approved, post loan sanction, you have to submit the prescribed original property documents along with signing of agreements and submission of post-dated cheques or ECS.
  6. Upon satisfactory completion of all the paperwork, the loan amount would be disbursed.

Document checklist to be kept ready:

  1. Salary Slips: It is advisable to keep at least three to six months’ salary slips ready. This would show a consistency of income and helps you in getting the loan sanctioned faster.
  2. Bank Statement: Bank statements are supportive documents to prove steady flow of income. Keep your bank account statement where your salary is credited ready for at least 6 months. Also, if you have another account wherein you have a chunk of savings, you could share the statement.
  3. Pan Card: This is a vital document in assessing your credit score. In recent times, banks and financial institutions depend on Credit Information Bureau (India) Limited or CIBIL scores are critical. It is good to pull out a CIBIL report of yourself so that you are aware when you approach for a loan.
  4. Address Proof: Your address can be validated via multiple documents such as voter identification card.
  5. IT Returns: This is another way to prove your income from all sources. Being a government document; it carries high importance and higher level authentication.
  6. Co-applicant/s: If you and your spouse both are earning, it would be a wise decision to co-apply for the home loan. This will actually increase your loan eligibility amount.

Keeping the documents ready makes you one step closer to buying the dream home. The other half, i.e. hunting your dream home can be made easier by your trusted broker. Kolabro – Neighbourhood Experts is an app which lets broker give you more options thus making your home search faster and easier.

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