A Step-By-Step Guide to follow once your Home Loan is approved

With a booming real estate market in India, there is a rise in the number of housing finance companies. Extremely competitive, they vie for the attention of consumers by coming up with attractive home loan offers. Likewise, there is a huge growth of residential and NRI Indians buying housing loans to help realize their dreams of owning properties.

The procedures and protocols are user-friendly and availing a home loan is quite easy. Every finance company have a standard eligibility criteria and some other specific ones endemic to their own company policies. Your salary (how stable the income is) - whether you are self-employed or a salaried employee, other sources of income, educational qualification, credit history (an impressive credit score may speed up your application), your debt-to-income ratio, number of people dependent on you for their financial needs, previous pending loans, your age (chances may be low if you fast approaching your retirement) are some of the criteria that help in the successful approval of your home loan.

Once your home loan gets approved, your finance company sanctions the loan value. There are several formalities that occur after approval. A complete assessment of the property you are about to purchase is one of them. Several aspects related to your property - whether it is under-construction or a ready flat - will be inspected.

The documents relating to the property will be assessed. NOC (No Objection Certificate) and other legal papers - mostly original - will have to be submitted to your finance company. All these will be thoroughly verified.

The next step involves that your register your property. This can be done only once your home loan gets the green signal. Stamp duty, registration charges, and other necessary fees have to be paid at this junction. Property registration will be done at the office of the sub-registrar. Upon completion of this process, you and your housing finance company will each get a Sale Deed (A Sale Deed is perhaps one of the most important paper that is signed between the buyer and the seller after both parties agree to the terms and conditions involved).

Your first payment is the down payment - through cheque or NEFT or other means. The proof of this is required by your lender company. After this, your lender company will release the fund - your housing loan amount. There will be processing fees and other charges to be paid to your lender company.

This is the basic structure involved. A lot of the procedure may differ from one institution to another. These should be cleared and be agreed upon by the housing loan buyer well before you put your application form for approval. You need to know every detail involved and keep a record of the documents that you use and also where you use.

I'm a financial advisor with an experience of more than 5 years in a href=https://www.indiabullshomeloans.com/Housing Finance Companies. I have worked for topmost financial firms in India.