Until a few years ago, the process of applying for a home loan was a cumbersome process that required loan borrowers to carry out a lot of paperwork and wait days to hear from their selected lender.
However, over the last few years, technological advancements and the growing need to outdo the other players in the market have led to lenders considerably simplifying the home loan application process.
These days, lenders can apply for home loans online and hear from their lenders within only a few days. The online home loan application function offered by lenders has made the entire loan application process quite simple.
In this article, we will talk about the online home loan application process and the various steps involved. Read on if you are planning to apply for housing finance anytime soon.Â
Online Home Loan Application Process: A Step-by-Step GuideÂ
Here is what to expect when one applies for a home loan.Â
1. Fill Out the Online Home Loan Application Form:
If you need housing finance, one of the first things that you will need to do is fill out the home loan application form. While filling out the form, you will be required to enter certain personal details about yourself, such as your name, email address, income, etc. Never falsify information and fill out your home loan application form quite carefully.Â
2. Wait to Hear From Your Lender:
After you have submitted the home loan application form, you will need to wait to hear from your lender. Your lender may take a few days to reply. Some lenders are known for quick loan approval. If you are in a hurry to get your loan approved, you can consider applying to a lender known for speedy loan approval and disbursal.
Once the lender you have applied to receive your loan application, they will go through all the information provided by you and if they have no reason to doubt your repayment capacity, they will go ahead and ask you to submit all the home loan documents for further verification.
3. Submit the Required Home Loan Documents:
If you are applying for a home loan, you will need to submit address, identity, income and property-related documents. To be better prepared, go to your lender’s website and access the list of documents you will need to submit in advance.
Your lender will verify the authenticity of each of these documents. They hire legal and technical experts for the task and therefore, this part of the loan application process usually takes at least a few days.Â
4. Wait for the Property Verification Stage:
If you successfully pass the home loan document verification stage, you will move to the property verification phase of the process. During this phase, lenders assess the physical condition of the property you want to pledge as collateral.
The experts you hire also check the property to make sure it does not defy any of the land or construction laws. It is only after you have passed this phase of the process, that your lender will start working on the final loan offer.Â
5. Sign the Final Loan Offer:
Once you pass the document and property verification stages, your lender will start working on the home loan sanction letter first. The home loan sanction letter is not the final loan agreement.
It merely contains details about the loan offer that your lender wants to make to you. Loan applicants must negotiate the terms and conditions of the loan with their lender if they are unsatisfied, but never sign the agreement if they find any of the loan terms objectionable.Â
6. Sign the Final Loan Agreement and Wait for the Home Loan Amount to be Disbursed:
You will need to visit your lender’s office to sign the final loan agreement. After this is done, the loan amount will be released into your home loan account. You can now complete your property purchase.Â
Final WordsÂ
The online home loan process has made availing of housing finance easier. However, loan applicants must always strive to get competitive home loan interest rates as doing so can help them save funds considerably. Further, loan applicants must also use online tools, such as the home loan EMI calculator and the home loan eligibility calculator, to increase their chances of loan approval as well as their negotiating power.
