You have decided to buy a home and it makes you both excited and anxious. Excited– as you will have a house, which you can call your own. Anxious – as you now have to figure how to apply for a home loan and you are not very sure about where you need to begin. If you follow a systematic process, your housing loan application process should be a smooth sail. Read on for a few simple steps that can help you to easily apply for a house loan and get it sanctioned.
1. Evaluate your financial situation
The very first step towards considering a home loan is to evaluate your current financial situation. Take stock of your financial responsibilities, savings, debts, and assets. This will give you an idea of what is the amount that you can afford to set aside for purchasing a home. Ensure that your home loan EMI is in the range of40 to 60 percent of your take-home monthly salary. You should not be in a situation where you have no money at the start of the month, just because you are paying EMI for your home loan and taking care of other credit expenses. Home Loan EMI calculator will help you decide how much your monthly EMI amount would be. Proceed further with your housing loan application only after you are clear with these numbers.
2. Do your homework
There are multiple providers in the market offering home loans. Check the features offered by the providers. At Indiabulls, we offer you an e-home loan feature by which you can apply for a home loan online. It speeds up the documentation process with facilities like e-Upload, e-KYC and auto-retrieval of bank statements. You end up completing the entire process of getting a home loan from the comfort of your home.
3. Take note of your CIBIL score
Your CIBIL score reflects your credit scores. Most banks will look at your CIBIL score before approving your housing loan application. If your CIBIL score is below the required level 750 out of 900, your loan application may get rejected. Make sure you check your CIBIL score at least three to six months before applying for a home loan and ensure that it has no discrepancies.
4. Keep your documents ready
Housing Loan application requires you to submit many documents for verification. It is wise to keep all those documents handy before you apply for the loan. Any missing documents may delay the loan sanction process. Consult with your home loan provider, get a list of documents and keep all of them ready, before you apply for a home loan. Additionally, you could also check with your employer on what documents you will have to submit to apply for tax redemptions on the loan amount and keep them ready as well.
Understand all the terms and conditions correctly and read all the documents carefully before signing. Ask as many questions as needed. Home loans are long-term loans. It is wise to make a well-researched and informed decision before you apply for a house loan. Choose smartly and the process can be hassle-free throughout the loan tenure. Related Articles: