How to Apply for a Home Loan - Step by Step Guide

Becoming a homeowner is a significant milestone though it requires a substantial financial commitment. To finance a home, owing to the high prices of real estate, it becomes necessary to know how to get a home loan. A home loan helps you avoid bearing the entire cost of the house upfront, allowing you to finance a portion via EMIs.

To get a home loan, you should know the home loan disbursal process and how to apply for a home loan with your preferred lender. This will help you be financially ready even before making an application and pave the way for a hassle-free approval and disbursal.

Here’s a short guide on how to apply for a house loan in India.

Basic Process of How to Get a Housing Loan in India

Learning how to apply for a home loan starts with knowing the general home loan process. This will help you make a complete application and avoid rejection. Below is an outline of the process:

  • Apply and submit documents: Fill the home loan form online or offline and attach the personal and property documents required at the initial stage.
  • Pay the processing fee: Lenders charge a non-refundable fee to begin and maintain the home loan account and process. This fee may be waived in some cases.
  • Application evaluation: Your lender will scrutinise the paperwork, the documents submitted, and your repayment capacity. You may have to physically meet an official too.
  • Approval and offer letter: If your lender is satisfied with the application, it is approved and an offer letter with terms such as the principal, tenor, interest rate, is drafted. You can sign and accept it.
  • Property verification: Your lender will visit the property for a technical check, valuate it, and ask for original property documents and submit them to a legal check.
  • Home loan disbursal: You get the loan amount after the home loan registration with legal documents, and once you sign the loan agreement.

 

Apply Home Loan with Bajaj Housing Finance Limited

To apply for a home loan with Bajaj Housing Finance Limited, start with this home loan application form.

Step 1: Enter personal, employment, property, and loan details in the relevant fields and submit

Step 2: Access your pre-approved offer

Step 3: Pay the processing fee for the available offer

Step 4: Submit the relevant documents

Now that you know how to apply for a house loan, learn how much you can apply for.

What is the Maximum Amount You Can Borrow?

Typically, you can get a home loan of up to 80-90% of the property’s value. So, if you are borrowing for a home worth Rs.1 crore, you can get up to Rs.80-90 lakh. The rest you would need to finance yourself as a down payment. Making a down payment shows your financial preparedness and making a large down payment minimises the cost of the loan.

How much you can borrow also depends on your current debt-to-income ratio. You can use the home loan eligibility calculator and home loan EMI calculator for better planning.

Documents Required While Applying for a Home Loan in India

Apart from knowing the process of how to apply, home loan applications also require certain documents that you should keep ready. Here are the common documents required for home loan asked for by lenders:

  • ID proof (PAN, Aadhaar, passport, etc.)
  • Age proof (Birth certificate, Aadhaar, etc.)
  • Address proof (Aadhaar, utility bills, etc.)
  • Educational proof (school, college certificates)
  • Income proof (IT returns, bank statements, etc.)
  • Employment details (Appointment letter, 6 months’ bank statements, etc.)
  • Business proof (Balance sheet, business license, etc.)
  • Bank statements
  • Property details (NOC, encumbrance certificate, etc.)

Now that you know everything about how to apply, housing loan approval is easier to get. Make sure you prepare beforehand and fill the forms honestly to enjoy quick approval.