How to Apply for a Pre-Qualified Home Loan and Its Advantages

Should I Apply for a Pre-Approved Home Loan or an After Property Finalisation Loan?_banner_WC

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Should I Apply for a Pre-Approved Home Loan or an After Property Finalisation Loan? _WC

5 min 15 Mar 2024

Highlights:

Benefits of Pre-Approved Home Loans
Factors to Consider while Opting for a Pre-Approved Home Loan

If you are planning to own a residential property, availing of a Home Loan can simplify the financing process for your purchase. In some cases, you may even be eligible for a pre-approved Home Loan, based on your profile, financial standing, and repayment capacity.

There are several benefits of a pre-approved Home Loan, especially when it comes to securing a good deal with the property developer of your choice.

Advantages of Pre-Approved Home Loans

Quick Approval and Instant Disbursal

One of the most notable advantages of a pre-approved housing loan is the ease of processing and disbursal that the borrower experiences. As the lender may have already evaluated your financial standing at a pre-cursory level, your loan application can be processed faster, following a smooth verification process.

Minimum Paperwork Required

When you are already pre-approved for the loan, the lender has already scoped out your eligibility. While borrowers still do need to furnish the required documents for the final verification rounds, the list may not be as lengthy or tedious.

Customised to Your Budget

When you are pre-approved for a housing loan, you are already aware of the tentative EMI amount you may have to pay every month. This will help you plan your finances accordingly and choose a loan amount that is tailored to your budget and financial standing.

Also Read: Smart Things to Consider Before You Apply for a Home Loan

Important Factors to Consider in a Pre-Approved Home Loan

Principal Amount

One must remember that while the pre-approved offer does offer certainty in terms of your loan amount, the final approval is still dependent on several external factors such as your property profile, and documentation verification.

Validity Period

The validity period for a pre-approved loan offer is usually limited from the time you secure the offer. It's important to finalise a property within this timeframe. Failing to do so will require a re-evaluation of your loan application.

Loan Terms

The final loan terms are determined at the time of loan disbursement taking into account your actual repayment capacity and other macro-economic factors.

Final Words

A Home Loan can be a prudent way to fund any real estate purchase. Borrowers get access to a substantial amount of funds at low Home Loan interest rates, which not only helps them own their dream home but also helps them keep their EMIs manageable. Home Loans also come with tax benefits and help one save funds. Further, housing loans come with a long repayment tenure, which makes the process of repayment easy. If you are planning to buy a home anytime soon, apply for a Home Loan in advance. Pre-approved Home Loans come with many benefits and can make the entire process of buying a home much simpler.

*Terms and conditions apply.

Also Read: Factors to Consider Before Applying for a Home Construction Loan

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