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.
Additional Reading: How A Home Loan EMI Calculator Works
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 best
home Loan. 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.
Additional Reading: All about Home Loan Insurance
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?
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