Home Loan

Home loans are used to buy residential property. People go for home loan to purchase the residential property or investment purpose because a large cost is involved in purchasing the property. Large financial organizations like all the MNC Banks, Nationalize Banks and NBFC are available to provide the Home Loans.

Home is a place where people get the real life enjoyment and spend the time with their family members, who take care about each others. It is a life time decision for a person to acquire a home with lots of planning and needed good amount of fund which is called "Dream Home". To acquire a Home people need a huge amount that is why they go for HOME LOAN from Banks or financial institution.

Home Loan is a loan offered against the security of a House / Residential Property which will be funded by the bank's. The Home Loan is a loan taken by a customer from the bank issued against the property intended to be bought on the part by the customer giving the banker a conditional ownership over the property i.e. if the customer is failed to pay back the loan, the banker can retrieve the lent money by selling the property.

Do keep originals of all pay stubs, bank statements, and other important financial documentation.

Do provide all documentation for the sale of your current home (i.e., sales contract, closing statement, employer relocation/buyout program).

Do notify your loan officer if you plan to receive gift funds.

Do keep a “paper trail” of any large deposits or balance transfers.

Do bring a cashier’s check made payable to the title company for the down payment and closing cost.

Do notify your loan officer of any employment changes (i.e., change of employer; recent raise/promotion; change of pay status, such as salary to commission, etc.).

Do Check out the neighborhood at different times of the day.

Do Contact your insurance agent early in the process.

Don't change jobs/employer without inquiring about the impact this change would have on the approval/approvability of your mortgage loan.

Don't make major purchases during or prior to closing (i.e., new car, furniture, appliances, electronics) because this might impact your qualification ratios. Please confer with your loan officer to have him/her calculate what your ratios would be with any additional debts.

Don't obtain and/or deposit sums of money over $500 without notifying your loan officer. FNMA/HUD guidelines require documentation as to the source of these funds (i.e., copy of bonus check, copy of tax refund, copy of insurance settlement, gift letter with copy of check and deposit slips, etc.).

Don't close/open or transfer any asset accounts without inquiring about the proper documentation required for our loan file (i.e., if you transfer all the funds in your stock account to your savings account, documentation is required).

Don't open or increase any liabilities, including credit cards, signature loans, etc., during the loan process. Please check with you loan officer for any documentation that will be required and what impact this would have on your qualification ratios.

Home Loan Documents

For Salaried

• 3 Months salary slips(latest last three months).
• Latest Form -16.
• Last six months Bank Statement (With salary reflection or Credits).
• Company Letter (Deputation letter) & Tax return copy.
• Pan card Photo Copy.
• Marriage certificate if applicable.
• Latest Residence Proof rent agreement + owners latest electricity bill copy).
• Age Proof, Sign Proof, and Photo ID proof.
• Passport size color Photo of applicant and co-applicant each.
• Original Telephone Bill Or Mobile Bill.
• Statement of account of existing loan along with 12 months statement showing regular debit of EMI if any.
• Property Papers in case of the resale property i.e. previous chain of Agreement Copy, Index II, RR, Sanction Plan, Latest Search and Title Report, Draft agreement copy etc.
• If property is purchased from builder then allotment letter from the builder.
• Architect's Estimate + Sanction plan.

For Self Employed

• Latest 3 years ITR’s along with computation of income,Balance Sheet, Profit and Loss, schedules and audit report if applicable. ITR’s has to be duly certified by a CA.
• Latest Share Holding Pattern Duly certified by CA in case of Pvt. Ltd or LTD Company
• Latest 3 years form 16 or ITR copy for director’s in case of Pvt. Ltd or LTD Company.
• Last twelve months Bank Statement (For all the bank accounts which are reflecting in Balance Sheet).
• Latest 6 Months Bank Statements – Personal Saving A/c in case of Pvt Ltd or Ltd Company.
• Existing Loans (RTR) along with welcome letter, RTR of all loans shown in Balance Sheet of the firm & in individual names.
• Proof of existence (Partnership deed copy, Memorandum & Article of association if applicable, Shop Act incase of Proprietor).
• Business Profile on company letter head
• Pan card Photo Copy of company, Directors,partners or proprietor.
• Latest Residence Proof for proprietor, partners or directors (if it is on rent then rent agreement + owners latest electricity bill copy).
• Age Proof, Sign Proof, Photo ID proof.
• Property Papers in case of the resale property i.e. previous chain of Agreement Copy, Index II, RR, Sanction Plan, Latest Search and Title Report, Draft Agreement copy etc.
• If property is purchases from builder then allotment letter from the builder.
• Architect's Estimate + Sanction plan.
• All you have to do is to provide supporting documents so that the home loan process can start moving forward.

Note: Please do self Attestation on all documents except PAN Card (Pan Card has to be signed by the respective person)

Home Loan Process

1. Loan Application

First and foremost you need to fill up a home loan application form. The information is more or less the same for all the banks. Generally, they ask for information like professional details, personal details, information about liabilities and assets as well as property details.

2. Personal Discussion

After the completion of application process, bank will take the one or two days to evaluate your papers. All banks will call you for a face to face personal discussion to gather more details about you which are not mentioned into the application form and to reassure them of your repayment capacity.

3. Contact Point verification by Bank

The bank will check all your information like reference check which you have already filled into the application,your existing residential address, your place of employment, employer credentials, residence and work telephone numbers.Representatives are sent to your workplace or residence to verify the details.

4. Credit Appraisal and Loan Sanction

If the bank is not convinced about your credentials, your application may get rejected. If it is satisfied then bank can sanction your loan. The bank evaluates your repayment capacity based on your information and based on that they work out your maximum loan eligibility, and the final loan amount is communicated to you. The bank then issues a sanction letter.

5. Sanction letter

Once the loan is sanctioned by the bank you will get the sanction letter in below format:

• Sanctioned Loan amount
• Rate of Interest
• Tenure of the loan
• EMI Amount
• If the loan is under some special scheme, then the details of the scheme
• General terms and conditions of the loan
• Special conditions, if any

6. The legal check of the Property and Property Papers

Once you select your property you need to hand over the entire set of original documents of the property to the bank, so that it can keep them as security for the loan amount given to you. The title documents of your seller, which prove the seller\s title including the chain of title documents if he is not the first owner.

7. The valuation of the Property

The bank do the valuation for the property which you have decided to go for by their approved valuer. If your agreement value and market valuation do not match then bank considers the lowest amount from both and on that valuation basis bank calculates the maximum funding amount.

8. Signing the Home Loan Agreement

After the sanctioning of the loan all borrowers are supposed to sign the home loan agreement with the bank. And they also need to submit post-dated / Security cheques along with the signed ECS forms. All the original documents of the property have to be handed over to the bank. And Bank keeps those documents into the fire proof safe of the bank.

9. Disbursement

After paying your own contribution payment towards the property bank releases the cheque in favour of the Builder or Seller. This would be the last stage of you home loan process.