How To get Home Loan In 6 Easy Steps

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Whenever you decide to take home loan then first check the following points:

1. Interest rates: Check Home Loan interest rates all banks.
2. Repayment Period.
3. Processing fees.
4. Time is taken by the bank for the process.
5. Required documents.
6. Tax benefits.
7. Subsidy.
8. Pre Closure Terms.

Only After comparing all these things you have to proceed with Home Loan. Sbi is the largest bank in India so most people prefer home loans from sbi and after sbi some private banks like hdfc, icici lead the market also. Before reaching a decision Check our Eligibility here Home Loan EMI calculator SBI

Step 1. Application Form (First Impression)

The first step is to fill the application with all your details like name, mobile number, address, employment details etc. Always fill your full application form and wherever blank scratch it. Furthermore, enclose all home loan required documents. Basically, your application form is your first impression to a bank official, many banks have the facility of online application facility. Always keep a duplicate copy of your application form till completion of the loan process.

Step 2. Required Documents

Check out the Home Loan Documents List below:

1. Identity Proof – Voter ID / Passport / Driving License / Employer ID.
2. Address Proof – Telephone Bill / Driving License/Passport/Voter ID.
3. 3 latest passport size photographs of applicant, co-applicant and guarantor.
4. PAN Card of applicant, co-applicant and guarantor.
5. Income proof Self-employed: I.T. returns for the last 3 years and Balance Sheet for last 3 years.
6. Income proof Salaried: Salary slips for the last 3 months and last year’s ITR/Form 16.
7. Bank statement for the last 12 months.
8. Bio-Data of Applicant.
9. Property documents.
10. Sale Deed, Sale Agreement.
11. Khata certificate.
12. Khata extract.
13. E.C. up to date.
14. Latest tax paid receipt.
15. Construction Permission & Approved plan.
16. Agreement for construction.
17. Advance paid receipts duly signed by the builder/developer.
18. Estimation (construction).

Additional documents for a take over from other banks / Financial Institutes:

1. Original sanction letter from existing Bank / FI.
2. Pre-closure letter with an outstanding amount.
3. NOC from existing bank / FI.
4. Statement of loan account.
5. Sale deed copy.
6. Latest valuation certificate.
7. Undertaking from bank/FI to directly send the title deeds to our financing branch.

Additional documents for Home loan for NRI :

1. Original sanction letter from existing Bank / FI.
2. Pre-closure letter with an outstanding amount.
3. NOC from existing bank / FI.
4. Statement of loan account.
5. Sale deed copy.
6. Latest valuation certificate.
7. Undertaking from bank/FI to directly send the title deeds to our financing branch.

Step 3. Loan Processing by bank

As soon as you submit your application along with the above documents bank starts your home loan process and check your CIBIL score which shows your borrowing behavior and repayment discipline.

Bank verifies the information you provided and checks the authenticity of the document. Bank will contact your employer to confirm your employment.

The loan application will move to the next step only if all the documents are in order, and your CIBIL score and credit report are good.

Step 4. Home Loan Sanction letter

After processing your application your bank gives you a home loan sanction letter of the loan in which all the details about a loan are mentioned like loan amount, rate of interest, tenure of loan, interest type. Read the sanction letter carefully and if you not willing to accept the term of sanctions you may refuse the loan in writing but only after paying the processing fee. Validity of home loan sanction letter is for 3 months. Even if your loan is rejected you can ask bank for a rejection letter and analyize the reason behind loan rejection.

Step 5. Mortgage of Property for Home Loan

Using the above sanction letter you can mortgage your property to the bank which secures the interest of the bank. Keeps in mind mortgage formats of all banks are different so before the mortgage, you must consult a bank official. Home loan stamp duty required for documents is depend on the respective state.

Step 6. Home Loan agreement and disbursal

After mortgage of property you have to sign different agreement with bank which mostly stamped which also born by you.

Most important to keep in mind always sign after reading the document, you may ask for copy of document before signing for reading carefully at home.

The important thing is Home loan benefits in income tax to decrease your income tax liability. If you eligible for home loan subsidy like Prime Minister Aawas Yojana you can avail it.