Understanding the steps involved in the Home Loan Process

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<h1>Understanding the steps involved in the Home Loan Process</h1><strong> Author: <a href='http://www.articleseen.com/profile_dialabank.aspx'>dialabank</a></strong><br /><p>There are various steps involved in getting a Home Loan from selecting your property to filling up the loan application. Following are the various stages in Home Loan: • The first step involved in the process is to find your property which is followed by the verification of property documents, post that the documents are examined & simultaneously you can start searching for the lender who can offer the BEST Home Loan Deal after checking your eligibility criteria. • Know the Home Loan Eligibility : Banks offer the loan amount only after checking your profile & based on various eligibility criteria’s like age, income & salary banks lend you the money. • Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however other fees & charges like Application fees, processing fees, legal charges should not be neglected when comparing various loan offers. • Applying for the Loan : After you have selected your lender, you have to fill in the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs. • Documentation & Verification Process : You are required to submit the necessary documents to the bank which will be verified together with the details in the application. • Credit & default check : Bank checks out the borrower’s loan eligibility (through repayment capacity) & the amount of loan is confirmed. The borrower’s repayment capacity is reached which is based on the income, salary, age, experience & nature of business etc. Bank also checks credit history through the CIBIL Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand high credit score gives a green signal to your application. • Bank sanctions Loan & Offer letter to the borrower : After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc. • Acceptance Copy to the Bank : The borrower needs to send an acceptance copy to the bank after the borrower agrees with the terms & conditions in the offer letter. • Bank checks the legal documents : The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank. • Signing of agreement & the loan disbursal : The borrower signs the loan agreement & the bank disburses the loan amount. </p><strong>About the Author:</strong><br />Gaurav Khurana is an expert on <a rel="nofollow" href='http://www.dialabank.com/home-loan.cfm '>Home Loan </a>. He is the Founder Director of DIALABANK.COM (Call 60011600) and Ex National Sales Head – ING Investment Mgt India and Vice President Citibank N.A <p> Article Source: <a href='http://www.articleseen.com/Article_Understanding-the-steps-involved-in-the-Home-Loan-Process_106525.aspx'> http://www.articleseen.com/Article_Understanding the steps involved in the Home Loan Process_106525.aspx</a></p>

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Keywords : home loan, loan, personal laon, Life Insurance ,

Category : Finance : Finance