Home Loan Process: A Step-by-Step Guide To Housing Loan Procedure

Home Loan

A home loan is a credit facility that you could avail of to buy or construct a house. Getting a home loan could be a straightforward process, requiring you to satisfy a few eligibility criteria and submit some basic documents. However, since home loans are big-ticket loans when compared to personal loans, lenders are more careful approving a home loan application. To ensure a smooth loan application journey, you need to keep a few factors in mind. Read this blog to know about the entire home loan process.

Important Information About Home Loans

People seek home loans to buy a new house or an apartment or to initiate repairs, renovations or extensions of their existing homes. Lending institutions offer home loans for these specific reasons against a house as collateral. If a borrower fails to repay their loan amount, the lender has every right to sell the property and recover all dues.

To avail a home loan, you need to fulfill certain eligibility criteria. Several factors including your age, repayment capacity, credit history, and other parameters will be considered before the lender decides to approve your loan application. 

If you are looking to avail a home loan, download the Navi app now. It provides a simple, hassle-free and seamless home loan process that takes only a few minutes to complete.

Also Read: How To Choose Banks/NBFCs For Home Loans?

Step-by-Step Guide For A Home Loan Process

Also Read: Home Loan Interest Rates

Steps to Transfer a Home Loan

Home loan repayment tenure is considerably long and you might come across a home loan provider with lower interest rate or more efficient services. You can choose to change your lender by opting for a home loan balance transfer. The following steps are followed for home loan balance transfer:

Step 1: Submit an application to your current lender stating the reasons on why you want to transfer your home loan.

Step 2: After careful consideration, the lender will provide you with an NOC which will be required by the new lender.

Step 3: Submit the documents along with the NOC and KYC details to the new lender.

Step 4: You have to collect the response from your old lender stating that the loan account has been closed successfully.

Step 5: As the old contract has ended, you can get a new contract with the new lender. Pay the fees if anything is due and you can start paying your EMIs to the new lender from the next month. 

Also Read: Home Loan Sanction Letter: What Is It And Why Is It Important?

Processing of Mortgage Loans

The processing of mortgage loans can be time consuming but with the right assistance from both sides it shouldn’t be much of a hassle. The processing of mortgage loans generally goes through the following steps:

Step 1: There are a large number of lenders in the market. You have to choose the one that is best suited according to your need and ability

Step 2: Once you have found your lender, get the pre-approval. Pre-approval states the maximum amount of loan that the lender is willing to provide you.

Step 3: Now that you know how much you can afford, you should find a suitable property.

Step 4: After you have found your property, you should approach your lender for the mortgage. The financial institution will ask you to submit various documents. As this is a secured loan, you will be required to submit a large number of documents for verification.

Step 5: After careful consideration of the documents, you will be given a loan estimate, usually within three business days. You have to give a credit fee to get the loan estimate.

Step 6: The loan estimate is valid for 10 days. If you accept it, the lender will begin with the next process, which includes verification of bank deposit, employment, property inspection, and title search.

Step 7: In the next step, your application will be verified by the underwriters. It is the most crucial part as your loan approval depends on the decision of the underwriters. 

Step 8: If your application is approved, you will be asked to be present at the lender’s office for a closing meeting. In this stage, you will come across the disclosure form. If you agree to everything documented in the form, you can sign the documents and collect the keys to your new home. 

Calculation of Home Loan Borrowing Capacity

You need to fulfill some criteria as required by the lender to be able to get a home loan. The capacity of the borrower is determined by a lot of factors. Some of them are common to all the lenders. They are as follows:

• Age of the borrower
• CIBIL score
• Work experience for salaried individuals
• Business continuity for self- employed individuals
• Monthly salary
• Other obligations
• Nationality 

How Can You Get An Instant Home Loan Approval with Navi?

If securing funds via the above-mentioned process seems too cumbersome, you can opt for a home loan from Navi. We provide housing loans up to 90% of the property value at low-interest rates starting from 7.39% p.a. 

Follow the steps given below to access your home loan in no time:

1. Download the Navi app–
2. Submit the property details, including property type and address.
3. Enter basic profile details and PAN and check your eligibility.
4. Get loan approval in just a few minutes without uploading any documents.

You can use Navi’s EMI calculator to determine the ideal EMI that will make your loan much easier to repay. 

Final Words

For a smooth and seamless home loan process, make sure you have all the basic KYC (know your customer) documents and property papers. Enter all the correct information, and you will get the home loan sanctioned in only a few days. 

FAQs on Home Loans

Before you go…

Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 7.89% p.a.

Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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