Home loan process: simple guide to apply for home loan online

Various banks and lenders offer home loans and lend the amount to an individual in exchange for the assurance that the home they purchase will serve as collateral to secure the repayment of the borrowed amount.

Buyers wanting to apply for a home loan can get confused about the home loan procedure. This home loan application guide will help aspiring homeowners understand the home loan process step by step online.

• Check the eligibility criteria
  Before applying for a home loan, applicants need to check their housing loan eligibility criteria set by the lender. Different lenders have different eligibility criteria, and it’s best to check the requirements of each lender one considers viable. Generally, lenders consider factors such as the applicant’s age, income, employment status, credit score, and property value when determining eligibility.
• Calculate the loan amount and credit score.
  Based on the home loan criteria and the value of the property, applicants can calculate the loan amount they need to apply for. Applicants can use online calculators available on the lender’s website to determine their EMI (Equated Monthly Instalments) and loan tenure. Applicants should also check their credit scores. A good credit score is essential to securing a home loan with attractive interest rates. One can check their credit score for free from credit bureaus like CIBIL, Experian, and Equifax.
• Research the banks/ lenders.
  Several banks and financial institutions offer home loans, each having different terms and conditions. It is wise to research and compare the different lenders and their interest rates, processing fees, prepayment charges, and other terms and conditions. This will help home loan applicants identify the lender that offers the best deal per their needs and budget. Once this research is over, the housing loan process gets easier and quicker.
• Gather the required documents.
  Once home buyers select a lender of their choice and calculate the loan amount they require, they need to gather the documents required for a home loan. The documents required for a home loan are as follows:
  • Identity proof: PAN card, Aadhaar card, passport, driving license, or voter ID card.
  • Address proof: Aadhaar card, passport, driving license, voter ID card, or utility bills.
  • Income proof: Salary slips, Form 16, bank statements, and IT returns for the last three years.
  • Property documents: Property registration documents, sale deeds, and land records.
  • Bank statements: Of the last 3-6 months, depending on the lender.
• Start the online application process.
  Visit the lender’s website and click on the home loan section. Fill in the online application form with personal details, income details, and property details. Provide accurate information, as any inconsistencies can lead to the home loan application getting rejected
• Upload the documents.
  After filling in the home loan online application form, applicants have to upload the required documents. Ensure that the documents are clear, readable, and in the proper file size and format requirements before uploading the documents.
• Pay the processing fee.
  After uploading the documents, one has to pay the processing fee. The processing fee varies from one bank to another and is usually a pre-specified percentage of the loan amount. One can pay the fee online using their debit card, credit card, or net banking. There are other hidden charges the applicant must check before application as well.
• Await verification and approval.
  On completing the home loan process and paying the processing fee, the lender will verify the documents and the applicant’s eligibility criteria. The lender may also conduct a site/ home/office visit to verify the property details and other information. If everything checks out, the lender will approve the loan application.
• Sign the loan agreement.
  Once the home loan application gets approved, the lender will send the applicant the loan agreement. Read all the terms and conditions of the loan agreement thoroughly before signing it. Ensure to understand the EMI breakup, loan tenure, prepayment, and other charges.
• Disbursement of the loan amount.
  After signing the loan agreement, the lender will disburse the loan amount to the applicant’s bank account. Ensure submitting accurate bank account details to avoid any delays in the disbursement process.

Conclusion

The mortgage process in India involves creating a legal agreement between the borrower and the lender, where the property acts as collateral for the loan. Through the home loan, the lender has the right to sell the property in accordance with law in the event of default by the homebuyer in payment of EMI.

This is why it is vital to understand the home loan T&C before applying for a home loan online. Fortunately, the online application process is easy, and one can complete it in no time.

Disclaimer- This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.