- Your home loan representative or agent visits you and guides you through the process involved and documents required to get approval.
- The loan documents are then submitted to the under writer who appraises the application.
- Once your documents are submitted next stage is verifications : document verifications, residence verification, office verifications.
This has to be positive else application can go on hold till further clarification or can also be rejected.Your CIBIL is also run to check on your current running loans and repayment history. This determines if loan can be granted or not to an individual or not.
- The credit manager or under writer will come back to you with one out of three possibilities :
Approved, documents required before a decision can be taken or declined.
In few cases approvals are given with few conditions for example : updated salary slip , updated bank statement, closure of an agreed upon loan or even property docs in some cases.
Congratulations !! Your home loan application is approved however there are several things you have to ensure to make sure of few things like not taking another loan, your credit report might be run again, and documents related to your property should be in order.
If its an under construction property, it should be approved with respective bank , hence check with bank before choosing property or choose your bank after checking which offers APF (Advanced processing facility) for that project. HDFC Ltd is most aggressive in this space and does best due diligence in industry before approving and does quarterly review of stage of construction to best safe guard borrowers’ money.
For an approved property, inside visit of property is made to check on the physical site and occupancy status of property. Its also checked what is the condition of the property and what is the residual life of property, for example normal life of a flat is 60-70 years, hence funding a 40 year old property for 20 years is not a good idea.
Read through borrowers’ conditions :
- Each phrase of the sanction letter and loan agreement is important to read through before executing the loan documents other wise few clauses can come out to be as rude surprise.
- If you are self employed, you might be required to carry original / CA attested balance sheets and profit & loss statements.
To Do’s :
- As a Preliminary step you should get a pre approval loan done from a reputed bank before making token money payment for a property so that you have sufficient time for legal issues to be documented and settled with relevant authorities.
- Have an opinion about the kind of property bank funds and the documentation and turn around time that is needed to complete all the formalities.
Most important :
In any and every kind of financial services or product in the industry and market, individual handling your application : Banker or Agent plays the most important role in the over all experience.
Its the knowledge, skill set, expertise in documentation and process flow and intent to service the client that varies from person to person. Same company and product customers would have different experience and opinion to share about the banking company and its laid down norms and procedures.
Next time you are giving your application to a banker / agent please visit www.bankuponus.com to check on their profile, experience and testimonials given by other customers served by him.
Do not forget to recommend the portal, BankUponUs.com to your favorite banker/agent who has served you well and give a thank you note here to help them have more business next time.
Please also share this with your friend and colleague to help them have informed decision while they apply for their dream home loan 🙂
Author is a leading bank employee having significant experience of more than 6yrs with mortgage leaders in home loan industry.