Last Updated on May 21, 2021 by MoneyVisual
The process of getting a home loan used to be tiring and time-consuming. We have left that time behind. Today, thanks to non-banking financial companies (NBFCs) you can have a home loan sanctioned within 24 hours. What’s more, the loan gets disbursed within 72 hours of the application.
But, there are cases of home loans getting rejected and sanctions taking more time than usual. These occur due to some misstep on the borrowers’ part. You can avoid such a situation by understanding the method of home loan sanction letter and disbursal.
Three Steps Towards Getting a Home Loan
Once you apply for home finance, the application is reviewed and approved. The second step is the verification of all personal and property details. Once the documents are in order, the loan is sanctioned. The amount is disbursed soon after this in accordance with the loan terms.
All you have to do is present all the authentic details and documents on time. Wait, there are some more things that you can do to ensure smooth conduction of each of these steps.
How to Ensure Quick Approval?
The first thing you should do is to find a suitable lender. Compare lenders to know the sanction times promised by each of them. Also, make sure that the facility of online application and approval is available and functional. Of course, check the home loan interest rates.
Once you select a lender you should ponder upon the amount you want to apply for. It is ideal to calculate your home loan eligibility before applying. This way you can stop your application from being rejected.
Documents to Keep Handy
Your loan amount depends on your monthly income as well as credit to income ratio. You should have documents proving your income with you. If you are a salaried individual you can show your salary details or income tax reports. If you are self-employed, your bank statements and profit and loss statements may be required. If you had any outstanding debts, then the no dues certificate may be necessary. The property documents are also required. The purchase agreement should also be available.
If you can furnish these documents required for home loan as and when required, nothing should hold your home loan sanction letter.
Verification of Credentials
This is conducted by the lending agency to make sure you have provided authentic details. The lender may send representatives to check on the hypothecated property. They can also cross-check your personal credentials. A home loan is usually worth a large sum of money and involves a long term commitment. So, the lending party is cautious as well as systematic.
The best way to get through this step is to help the lender to conduct the checks with ease. What you can do is provide authentic information about your own address, occupation and the property you have bought.
Things You should not Do if You are Planning to Apply for a Home Loan
- Do not change your job before applying for a housing loan. Lenders are more likely to sanction a larger amount if you have a stable job.
- Do not change your address in between applying for the loan and getting it sanctioned. It can have a negative effect on the prospect of your getting a home loan.
- If you have a credit account with a clean credit record then you should not close it right before getting the house loan. This is because it might have a negative effect on your CIBIL score.
- If you are planning to take a home loan within a few months then it is a bad idea to take any other loan. Any extra loan will affect your credit to income ratio. The home loan process has become faster and hassle-free. Most of the process is online and the sanction and disbursal happen quite fast. All you need to do is to keep your end tight.