Buying a house using a home loan may be a substantial financial commitment, but when you’re fully prepared, it’s the safest and most profitable of all investments. It is an asset that cannot be stolen and one whose value only appreciates with time. Are you planning on taking a home loan in Mumbai? If so, then keep reading to find out all about the loan disbursement process.
Step #1 Home Loan Application and Documentation
The very first step in your home loan disbursement process in Mumbai is the application followed by documentation submission. Today, you need not worry about a tiresome application procedure and cumbersome paperwork. Apply for home loan from the comfort of your home or office – easy home loans are available online wherein you need to fill up your application with personal details. After which, you need to furnish all the documents required by your lender. Be sure to provide all the essential documents diligently, or your application may be turned down.
Step #2 Verification
Once you have submitted the necessary home loan documents, your lender will verify every single one of them. Why? Because the documents help the lender assess your home loan eligibility. For example – with the help of your CIBIL score and credit history documents, lenders can offer you specific home loan interest rates. Lenders usually charge low home loan rates from applicants with a CIBIL score of 750 and above.
Similarly, your age-proof documents help the lender decide whether to offer you a longer repayment tenure or not. Do remember that with a longer repayment tenure comes higher home loan interest outgo.
Step #3 Property inspection and legal checks
After document verification, comes the process of the property inspection. In this step, your housing loan lender will have inspection officers visit your property premises and inspect the ins and outs thoroughly, from the strength of its foundations to the condition of the interiors and exteriors.
Depending upon the inspection, the lender will evaluate your property’s value. Keep in mind that your lender will sanction a home loan amount that they consider your property is worth.
Step #4 Loan approval
Once all the checks mentioned above are done, your lender will approve your home loan. Post-approval, you will receive a sanction letter, which will include all your loan details such as the sanctioned home loan amount, type of home loan interest rate, loan tenure, mode of repayment, etc. At this point, you need to sign and send an acceptance copy to your lender, if you agree with the terms.
Step#5 Loan disbursal
Once you complete the above steps, you will receive the final home loan agreement from the lender after which the loan amount will be disbursed based on the mutually agreed terms. In case of an under-construction property, the home loan amount is disbursed based on the construction stage whereas the disbursement is full in case of a ready-to-move-in property.
Do you want to apply for a home loan online? Before applying for a home loan in Mumbai, check your eligibility, documentation requirements, and plan out your EMIs in advance. To check your affordability, use an online home loan calculator such as the home loan EMI calculator. Lastly, make sure to go through your home loan agreement carefully.