Are you ready to buy a dream home of your choice? Congratulations! Buying a dream home is everyone’s wish and a lifetime decision for many! It becomes even more crucial if someone is buying his/her home with a housing loan.
Yes, a housing loan can help you buy your dream home easily!
But, after having said that, many people don’t know the steps that can help them get a Home Loan easy. If you are a first-time home buyer seeking a Home Loan, you need to follow nine steps to avail it easily.
- Check your Credit Score
Be informed to know that your Credit or CIBIL Score will be the first thing that your probable lender will assess while approving your housing loan. If you have managed to repay your bills on time or have a clean repayment history of your existing loan EMIs, a lender will approve the loan. What’s more, if your Credit Score is well above the average, you may also grab lower Home Loan interest rates.
- Always Shop Around
Some people ignore to check other Home Loan offers once they see if they are eligible for a Home Loan. While it’s good to feel excited to be loan ready, it’s not good to not check other offers. Simply land on a third-party website and compare different Home Loan offers quickly. Pick one as per your needs, affordability, and repayment capacity to get the best deal.
- Opt for Fixed Home Loan Interest Rates
Having a fixed Home Loan interest rates is paying a fixed amount in the form of EMI over the loan tenor. No matter what the market condition, your Home Loan interest rate is fixed and helps you save money compared to a floating interest rate.
- Check your Eligibility
Every bank and financial institution has its own set of eligibility criteria. Their major concern is assessing your repayment capacity. The higher your monthly income is, the higher the figure that you will be eligible for a loan. You can also use a Home Loan eligibility calculator available free at a leading lender’s website. Using the eligibility calculator for a Home Loan will help you gauge your eligibility before applying for it.
- Application for the Loan
Either you can download a Home Loan application from a lender’s website or fill a form online and submit at a lender’s website. Once you submit your application, lenders will process it and let you know if you have the required eligibility for the desired amount. If you are applying with an offline lender, you would need to visit the office to apply.
Before the big moment of loan approval and money disbursement arrives, you will need to furnish some documents to process your Home Loan further. The basic documents should comprise of:
- Income proof
- Identity and address proof
- Salary Slips/Income tax returns
- Bank statements
- KYC documents
Depending on the service provider that you opt for, the list of documents required for the Home Loan may differ.
- Valuation Report
Banks or NBFCs will send a representative to verify the property against which you wish to avail the loan. He/she will check if the property has major defects denoted by the valuer. Lenders have experienced evaluators to assess the value of a property as per the established guidelines and parameters.
- Registration and Signing
Once the valuation report is submitted, the Home Loan registration formalities will begin. Documents will finally be prepared, and it will be signed by the loan seeker and submitted again to the bank/NBFC.
- Money Disbursement
It is finally the payment time! Once the registration is completed, the bank or service provider will disburse the loan money in the name of builder, or society. The credited amount will either be paid in full or in stages.
The Bottom Line
You now know the steps that you need to follow to avail a housing loan without hassles. Why wait, go ahead and buy your dream home today with an online Home Loan!