After choosing the bank for home loan, prepare your paymentas banks offer only 80% of the total cost. Also check yourloan eligibility and keep all the necessary home loan relateddocuments ready.

You can avail the application form from any bank office ordownload it from online. Duly fill the form and attachcopies of the loan related documents such as ID proof,Address proof, Age proof, Income proof, proof ofeducational details and employment, bank balancestatement etc., if you apply online, you can get instantprovisional approval within 24 hours.Send the form andthe non refundable processing fee to the bank for loanapproval process. The processing fee differs from one bankto another from 0.25% to 0.50% which is usually nonrefundable in case if the loan is denied. This is used for theloan processing procedure and maintenance of your loan.

After submission of application form, the applicantwill be called by the bank for a face to face discussionto evaluate the papers and decide on the paymentcapacity and to decide on the loan amount etc. Thisdiscussion meet happen in 2 or 3 days after thesubmission of application form. At this point, theapplicant can also bring the original documents of allthe proofs submitted earlier.

A field investigation will be conducted to check all theinformation stated in the application form and qualifiedbank employee or a verification agent will investigate andverify all the details. The representatives will visit the officeand residence of the applicant to verify the details. In theprocess, the references mentioned by the applicant willalso be checked and cross verified.After this, the bank willverify the applicant’s repayment capacity and if it is notsatisfactory, the loan will be rejected. It will check theability of the borrower to repay the loan amount withinterest on time along with the previous loan transactionstrack record. If the bank finds that the applicant can repay,then the loan will be sanctioned.

Once the loan is sanctioned, the bank will send anoffer letter to the applicant with details regarding thehome loan such as loan amount sanctioned, interestrate for the loan, type of interest selected: fixed orfloating interest rates, loan tenure, mode of loanrepayment, special scheme or offer if applicable andthe general terms and conditions of the home loanapproved.If you are satisfied with all the norms, thenyou can provide an acceptance letter with yoursignature to the bank to acknowledge the sanction.

These days, the bank requires all the legal documentsrelated to the property for availing the loan. The bankwill perform legal check and these documents will bedetained by the bank till the applicant repays the loanamount.

Along with the legal check, the bank will also performa technical valuation of the property. For underconstruction projects, the bank will check the qualityand progress of the construction work along with thelocality valuation to evaluate the value of the property.The bank has qualified valuators to assess the propertyvalue under established parameters. This is performedto ensure a clear title and if the property is viable andmeets the valuation standards.

After all the financial and technical valuations, thehome loan registration process begins. The legal loandocuments will be prepared on stamp papers by thebank lawyer. The loan agreement must be signed andsubmitted back to the bank along with post dated

cheques.

After registration, the bank will disburse the loanamount based on the agreed terms of disbursal eitheras a full payment or partial payment mode in stages.Usually for ready possession of the property, theamount will be disbursed in full.

The above mentioned home loan process is applicablein most banks though there might be changesaccording to individual bank policies. This long homeloan process is now simplified with the instant homeloan process available online. You can try ay one basedon your convenience and requirements.