You’ve searched for your dream home. Now you’re
looking for a Home Loan? If you’re wondering what happens after your Home Loan
is approved, this is your quick guide to the post-application process.
Property assessment
First things first, property assessment! The property
that you want to buy, as well as any property that you provide as collateral
security will be inspected by a technical officer. If it is an
under-construction property, the stage of construction and quality of
construction is noted. If it is a completed property, the age of the property,
internal and external maintenance, and development of the surrounding area will
be noted by the officer.
Scrutiny of documents
The documents pertaining to the property will also be
scrutinized by a lawyer. Generally, only the original documents for the
property are accepted by the bank. The No Objection Certificates (NOC) need to
be submitted to the bank.
Property Registration
You need to go to the sub registrar office for the
registration of your property. You also need to pay your stamp duty and
registration charges. After this process is complete, you will receive a copy
of the Sale Deed and another copy will go to the bank.
Pay Your Part
The bank will ask for proof of your contribution to
the loan. This is your down payment. You might need to give your bank
statement, with a cheque or net banking details of transferring the money to
the builder.
Disbursal of Home Loan
On your acceptance of the loan offer extended by your
lender, the assessment is done and documents are scrutinized. The property also
gets registered in your name. Once this is completed, you will need to submit
the final processing fee to your lender by cheque.
When the processing fee is received by your lender, a
cheque for the approved loan amount is prepared and given to you. Your Home
Loan repayment schedule will begin one month after the loan is disbursed.
Funding Release
If you purchase an under construction apartment, your
bank will release the funds in stages. This will be based on the construction
progress. So, until the construction is totally completed, you needn’t pay EMIs
for the whole Loan amount. Sounds fair? For a completed apartment or house, the
funding will be released in one shot.
ECS Set Up
The Electronic Clearing Service (ECS) or the standing
instructions need to be set up for your loan. Here, you need to sign ECS forms
so that the EMI gets auto-debited every month. Earlier, this might not have
been mandatory. Now, banks are making it mandatory to submit ECS forms for all
Loans. This way, you don’t have to worry about forgetting the due date of your
EMI.
Get Demand Letters
As and when the builder completes the construction of
the house or apartment, funds will be released by the bank. You need to get a
demand letter from the builder and give it to the bank whenever the funds need
to be released. The builder needs to provide a receipt for the same. This
receipt should be handed over to your bank
Getting a Home Loan is simple, really. If you’re
ready to get one step closer to your dream home, why don’t you browse our
offers on Home Loans?
Source:
https://blog.bankbazaar.com/what-happens-after-your-home-loan-is-approved/
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