Tips for a Smooth Home Loan Process

Overview

Home loan process is simple but requires cautiousness on certain things, ensuring a smooth process and fast approvals; if you are a first-time homebuyer looking for financial assistance from lending institutions in the form of a home loan, you should pay attention to several essential factors.

To understand the appropriate approach to buying a new house using a home loan, it is essential that one must understand their financial health and ensure that he is ready to repay the Home loan EMIs along with a downpayment without straining personal finances.

When you start explo

ring the market to find the best home loan deal, don’t forget to take the help of OneNDF- India’s leading loan platform, associated with India’s leading lenders, including top Banks & NBFCs. They ensure a competitive interest rate and 5x faster disbursal; they will also let you talk to lenders directly!

Determining a home is a basic need, and identifying the home loan process as the knowledgeable awareness, we’ll be educating readers with tips for a smooth home loan process. Remain alert!

Know your Credit score.

Any loan or credit facility cannot be fulfilled without the consideration of credit score; whenever one submits the loan application, the first step involved in the processing is the evaluation of the credit score of the particular applicant, in case of home loan minimum credit score asked by lending institutions is atleast 700 or above to get the approval, low credit score carries a chance to get one’s application rejected. Further, the CIBIL score is directly proportional to the eligibility of the loan amount asked; a higher score procures a higher amount, so paying all the dues on time, including credit card bills to maintain the appropriate score is better.

Check your Credit score for free! (Also, check the score every 3-6 months)

Arrange all related documents.

When filling out the application form, one needs to attach all the supporting documents before sending the file further; those documents are established as proof of all the columns filled in the application form. Documents needed for Home Loan application are

KYC documents - Identity & Address proof
Salary slips
Income Tax returns
Bank Account statements

Documents required may vary from lender to lender and slightly depends upon whether the individual is salaried or self-employed. Hence, checking the lender’s website for precise information regarding documents is suggested.

Maintain Downpayment amount

To get yourself prepared with a downpayment, start planning your finances on earlier hand that too before initiating your home loan application; it is getting tough nowadays to save the amount with all going expenses, in general lenders require a minimum of at least 10-30% of the market value of the property. Making small changes in your budget can ensure high savings in the long run. Also, paying a higher downpayment will save your finances in the long run.

Be aware of rates & fees charged.

At the time of exploring the home loan market and getting in touch with different lenders, whenever the lender introduces you to their schemes, be aware of the interest rate and types of fees charged. Interest rate is the critical factor and significantly impacts your EMI amount; a higher rate will let you pay the higher EMI amount every month and throughout the whole repayment tenure.

Get in touch with India’s Top Home Loan lenders and finalise your loan at less interest rate.

Make sure you have stable earnings.

When the applicant has a fixed amount of earnings or a stable source of income, that signifies one carries the potential to repay the borrowed amount and is not a risky shot to take. In the case of a salaried person minimum, it requires the amount of above 50,000. Whereas in the case of self-employed individuals, a minimum turnover of 20 Lakhs is required.

Use a home loan EMI calculator.

Using a home loan EMI calculator is a vital loan repayment tip that one should pay attention to; it is suggested to calculate the monthly EMIs before approving the loan. The monthly EMI amount comprises of Principal amount in addition to the interest amount divided by the total number of tenure in months.

Use the OneNDF Home Loan EMI calculator and calculate the amount in one click.

Be in touch with the lender finalised

Home loan process can sometimes become hectic and more complex; therefore, staying in touch with the lender throughout the process will be better. Also, sometimes lenders need additional information before disbursing the amount; this will help you build healthy relationships with the lender and get timely help when needed.

Closing statements

Home loan is the much-availed loan scheme that lending institutions generally provide, a home being the basic necessity of one’s life and is very hard to own a home without a proper loan; However, taking a home loan is similar to any other loan process. Still, one must take care of some specific and significant factors before finalising the lender and sanctioning amount, as discussed above.

OneNDF, along with leading lenders, offers a wide range of home loans with competitive pricing; we hope this home loan write-up helped you today; for more information, you can call us at +917810844844 or Chat with us!

Tips for a Smooth Home Loan Process: Frequently Asked Questions

Q.1 How to get a 100% home loan from Bank?

No, one cannot get 100% of the amount for a home loan from any lender.

Which banks offer the most attractive home loans?

SBI Home Loan - 8.05 - 8.55%
Axis Bank Home Loan - 7.60 - 8.05%
ICICI Home Loan - 8.40 - 9.45%
HDFC Home Loan - 8.60 - 9.50%

Q.2 Can I get an 80% home loan?

For amounts above Rs 30 lakhs and upto Rs 75 lakhs Loan to value (LTV) ratio set is 80%.

Q.3 Which bank is number 1 for Home Loan in India?

People prefer the State Bank of India when it comes to Home loans, as the state bank is the reputed nationalised bank managed by the Government of India and has the capacity to finance upto 90 % of the property cost for upto 30 years.

Q.4 Which Bank gives the cheapest home loan?

HSBC bank gives the cheapest home loan @ 8.50%.