Process of Availing Home Loan
Sharmaji : I can’t tell you Vinodji how relieved I am feeling now. Thank you so much for telling me about Home Loans. Now I feel my dream home is not too far.
Vinodji : You got it! Home Loan could very well be the first step to make your dream of owning a home a reality.
Sharmaji : Quite true. Please tell me more about the Home Loan application process. Is it really complicated?
Vinodji : It is not complicated. It just has a few stages.
Sharmaji : So how do we start?
Vinodji : Simply contact the desired Bank or Housing Finance Company. Their representative will visit you and help you with the process. Basically, the lender wants to know if you have identified the property you want to buy and how much money you would need.
Sharmaji : Okay. What if someone hasn’t identified the property yet? Can they not get a loan?
Vinodji : Yes. They too can. Sometimes applicants finalize on the property depending upon the loan amount that is sanctioned.
Sharmaji : That is really helpful. What next?
Vinodji : Like we do not lend our money to a stranger, banks or housing finance companies also want to know their customers better before giving them a loan.
Sharmaji : Okay. And how do they do that?
Vinodji : There is a documentation process where you need to submit your Id proof, residence proof and income or bank statements.
Sharmaji : How do income or bank statements help?
Vinodji : These statements give the Bank or Housing Finance Company an idea whether you will be able to repay the loan or not and how much loan can be given to you.
Sharmaji : Got it! Are there any more documents they ask for?
Vinodji : Yes. If you have already identified the home you are buying, they may also ask you to share details of the builder and property related documents.
Sharmaji : Alright. Does the bank or housing finance company also verify the documents that we submit?
Vinodji : Of course! They visit your place of work or residence to confirm your identity as well as the validity of the documents submitted.
Sharmaji : Great. That should not be a problem I think. I have all the documents.
Vinodji : Once everything falls into place, the bank or housing finance company gives you a sanction letter. It is like an offer letter mentioning the home loan amount that has been sanctioned, interest rate applicable, the tenure of home loan, EMI details and mode for repayment, processing fee and any other terms and conditions applicable.
Sharmaji : Great. So there is complete transparency, right?
Vinodji : Absolutely. It’s a fair deal! Now you are almost done. Once you accept the terms in the sanction letter you are good to go.
Sharmaji : Great. And how do I get the loan amount?
Vinodji : Once all the verification process is completed, Loan documents like a Home Loan agreement and security documents will be signed. The home loan will be disbursed in part or full as per your requirement, through a cheque in the name of the seller. You just have to visit the bank or the housing finance company to pick it up.
Sharmaji : Is that all?
Vinodji : Yes.
Sharmaji : That was quite smooth! I am definitely going to consider a Home Loan and suggest my friends too to go for it. What do you say?
Vinodji : I completely agree. That’s what I just did here!
Sharmaji : True. Thank You for all your help.
Issued in public interest by DHFL. For more details about Home Loan, please visit us at www.dhfl.com