Get your Mortgage Loan Approved Quickly and Easily
You might be ready to move into a home tomorrow. However, just like with any property you plan to purchase, getting approved for a mortgage is a lengthy process. Before the digitization of banking, mortgage loans in India entailed a complex and time-consuming process for applicants.
Now, in the era of Online Banking, it has gotten much simpler. Nevertheless, you want to ensure you have your income details, credit score, and other necessary details in place to avoid unnecessary hassles. Here is a handy guide to help you with the steps.
What is the Mortgage Loan Process?
Here’s an overview of what to expect if you’re just getting started with a mortgage loan.
1. Fill Out the Application Form
To get a mortgage loan, you first need to fill out an application form. Applicants must list their personal information and other vital details regarding their income, employment, homeownership status, existing debts, education, etc. You can choose to fill out the application form online or offline.
2. Submit the Form with Required Documents
After completing your application form, you’ll need to attach supporting documents and send them to your lender.
- Proof of your identity(Aadhaar Card, PAN Card, Passport, etc.)
- Proof of your address(Aadhaar Card, PAN Card, Passport, Utility Bill, etc.)
- Proof of your age(Aadhaar Card, 10th certificate, etc.)
- Proof of your qualification
- Proof of your business(Business License, Proof of Business Address, etc.)
- Proof of your income(Income Tax Return, Bank Statements, etc.)
- Documents about the mortgaged property(an authorized copy of the building plan, a letter of consent from the builder, etc.)
3. Processing Fees
After you are have completed filling out your mortgage application to the lender’s satisfaction, they will ask you for processing fees. The processing fees are non-refundable, and their amounts vary from lender to lender. The minimum amount may range between 0.25% and 1.0% of the amount of the requested loan. Some lenders, however, don’t charge processing fees at all.
4. Documentation Verification
The lender will now proceed with evaluating submitted documents and other information. To determine whether you can be eligible for a home loan, they might even visit your home or get in touch with your employer.
5. Sanction Letter
Following the initial processes, you will get a sanction letter, which will normally include the following information:
- Amount of the sanctioned loan
- Agreed mortgage loan interest rate
- Term of the loan
- Repayment method
- Your home loan’s policies
- Terms and conditions
6. Property Verification
Before accepting the loan, your lender will verify your property. They will make sure that you have all of the documentation in order. This includes copies of your title deed or no objection certificate, encumbrance certificate, etc. They’ll also do a legal check to make sure that there are no disputes about your property’s title. The lender will conduct a technical valuation on your property via inspection visits by their representative(s).
7. Loan Disbursal
You will receive the final agreement from the lender once all of the above processes have been completed successfully. Subsequently, the mortgage loan will be given according to the conditions that were mutually agreed upon.
The mortgage loan process can be a long one. From the moment you start your home search to the moment you sign your mortgage documents, the journey can take several months.
As you begin your home search, you will need to gather various documents to provide the lender. These documents will show the lender that you meet the basic income and credit requirements for purchasing a home. Once you have your down payment and your loan documents, you will have to finalize the loan with the lender.