Summary: An Applicant approaches Bank with documents supporting
their Employment, Income, Residence and Age Proofs. The Bank then conducts a
scrutiny of applicant’s submitted documents. After positive verification, the
applicant is issued loan sanction letter. The loan sanction letter contains
Bank offer to Applicant. This is Sanction process. If, applicant agrees through
a mutual acceptance letter; he is given loan amount as part of disbursement
process.
Let’s Break It Down:
0). Ground Zero
Each applicant is required to find out different home loan
products and then compare them. Take your time and ask around as to how to go
about home loan. Home Loan is a complex bank product and it is alright to
little lost, as there are many factors to consider. If you have spent months
finding the best nest for you, then you should spend the same time in Home
Loan.
Sticking to Home Loan process, let’s assume you have decided
upon a Bank X to apply.
1). Do your Home Loan Documents
The most frustrating part of taking a home is documentation.
There is nothing smart about the documentation process. Here is a list of
documents to prepare. Once you have ALL the documents, before calling Bank X,
You have saved almost 2 weeks. (In typical scenario, Bank Agents take 3
documents, and then call 4 days later for 3 more and 2 weeks later for 4 more
documents.)
2). Home Loan Application
Bank X will provide you a form to fill and submit. While you
are at the bank, show them your documents and ask for GFE(Good Faith Estimate)
of your Home Loan interest and processing Fee(also for Home
Loan Balance Transfer). Please take the form back home and take your time
reading it. This will also give you time to compare bank X offer with Bank Y.
3). Submit Application
Fill out all details in home loan application form and take
all your documents to bank X. Submit the form and documents to Bank official
and take acknowledgement of all documents submitted. Ask the bank about the
time they will take for Sanction process.
4). Applicant Verification (Address, Age, Income source,
credit history, assets, liabilities etc )
5). Condition Sanction Letter
If the Bank finds you credit worthy, they will lend you. An
offer letter is sent to you by Bank. Or they are required to tell you the
rejection reason.
6). Property Documents
Let the Bank now about decision. Good time to negotiate on
the offer with Bank X. If you accept, Bank X now needs all documents for legal
verification of yours (to be) property.
[Source: https://loaneasy.in/home-loan-process/]
