Acing the loan application: The definitive DIY guide

It’s not as complicated as it initially appears, and the housing finance company can guide you through it. It’s all about the right documentation.

Every home buyer who has borrowed a home loan will speak about the loan application process as being ‘long-winded’, ‘complicated’, etc. Ultimately, it all boils down to the kind of housing finance company you take the loan from. The more professionally designed the loan product and the simpler the application process, the easier and faster the process goes.

However, acing the loan application process is about doing the paperwork correctly. There is a comprehensive list of documents you need to submit with the loan application, and having all the right documents is key to completing the process. There might be delays if there are missing documents, or if the sale agreement papers have some lacunae, etc.

Do follow these steps in applying for the loan:

* Study the application process.

The loan application process is somewhat similar across most housing finance companies. However, you must consider applying online, especially if the lender offers insta-approval and online application facility. Also, processing the loan request online costs you less money. Check the lending institution’s online application process before you start to fill out the form. The lender will also have a list of documents required for the home loan on the website, so make careful note of this list.

* Put your documents in order.

After you have got the list of documents required for the home loan from the housing finance company, you must start putting the paperwork together. If you are applying for a pre-approved loan, then you do not need to submit the house sale agreement copy at this stage – only your ID proofs and income statements will do. Broadly, these documents are required for the home loan:

  • Personal ID proofs: Birth certificate, Aadhaar number, PAN
  • Residence proofs: Passport copy, or power/gas bill showing your name as the owner (or father or husband’s name as owner), or ration card in which your name is mentioned, or current leave and licence agreement (mentioning your name as a licensee), driving licence, etc.
  • Education qualification certificates (graduation/post-graduation certificates or mark sheets)
  • Income proofs: Salary slip for at least six months/business income proof for six months, bank statements for last six months showing income deposited in the savings or salary account
  • ITR for last two years
  • Application processing fee
  • Completed application form with latest photographs
  • Registered copy of the sale agreement of the flat you wish to buy

* Apply for the loan.

After you have put together the documents required for the home loan, double check your application form for all the information you have entered. If satisfied, you can upload the form and supporting documents as directed to the housing finance company. After this, the lender scrutinises the application, documents, the property, your place of work and current residential address, etc. Once everything is found above board, you are informed about the loan approval and given a disbursal date.

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