Your Home Loan Procedure Made Easy: A Step-by-Step Guide

                
Securing a home loan can be a pivotal step in achieving your dream of homeownership. Understanding the home loan process helps in making this journey smoother and more 
manageable. This comprehensive guide breaks down each step to help you navigate the loan process easily and hassle-free.

Steps to apply for a Home Loan 
The home loan process in India involves several steps, from application to disbursement. Understanding each step can help you navigate the process more smoothly and increase 
your chances of approval. Here’s a detailed overview:
1. Research and Comparison
Start by researching various banks and financial institutions that offer home loans. Compare interest rates, loan tenure, processing fees, and other terms and conditions. Use online 
tools and resources to get a sense of the best offers available. BASIC Home Loan has proprietary tech for best lender selection which means you wouldn’t have to go through all the 
hassle.  
2. Check Eligibility
Each lender has specific eligibility criteria, including age, income, credit score, and employment status. Make sure you meet these criteria before applying. Common requirements 
include:
•	Minimum age: 21 years
•	Maximum age at loan maturity: 60 years (salaried) or 65 years (self-employed)
•	Stable source of income
•	Good credit score (typically 700 or above)
Suggested read: Home Loan Processing Time
3. Application Submission
Once you choose a lender, you need to fill out a home loan application form and submit it along with required documents. These documents usually include:
•	Identity proof (Aadhar card, PAN card, passport, etc.)
•	Address proof (utility bills, rental agreement, etc.)
•	Income proof (salary slips, bank statements, IT returns)
•	Property documents (title deed, sale agreement)
•	Employment proof (employment letter, business proof for self-employed)
4. Processing Fee Payment
Lenders charge a non-refundable processing fee to cover the administrative costs of processing the loan. This fee is typically a percentage of the loan amount.
Suggested read: Home Loan Processing Fees of All Banks
Unveiling the Fee Structure: The processing fee usually ranges from 0.25% to 0.50% of the requested loan amount. Let's say you've applied for a home loan of Rs. 15 lakh. The 
processing fee would be Rs. 3,750 at 0.25% and Rs. 7,500 at 0.50%.
Remember, this fee may include a commission for the agent handling your home loan process but don't worry. Many banks have a flexible fee structure that can be negotiated. It's 
worth trying to discuss and bargain the processing fee to get the best possible deal.
Keep up the enthusiasm and determination as you progress towards becoming a homeowner!
5. Verification and Assessment
The lender will verify the information provided in your application and assess your creditworthiness. This includes checking your credit score, verifying your employment and income, 
and evaluating the property’s value. The lender may also conduct a physical inspection of the property.
6. Sanctioning the Loan
If the lender is satisfied with the verification and assessment, they will issue a sanction letter. This letter outlines the approved loan amount, interest rate, loan tenure, and other terms 
and conditions. Review the sanction letter carefully and accept it if you agree with the terms.
7. Legal and Technical Check
The lender will conduct a legal check to ensure that the property has a clear title and is free from any legal disputes. A technical check will also be performed to assess the 
construction quality and value of the property.
Suggested read: Home Loan Disbursement Process
8. Loan Agreement and Disbursement
After the legal and technical checks, you will need to sign the loan agreement. Once the agreement is signed, the loan amount will be disbursed. The disbursement can be in full or in 
stages, depending on the type of property and construction status.


Source : The Economic Time