Get a Home Loan Without Visiting Branch: A Step-by-Step Guide

For most prospective homeowners, availing a Home Loan is a financial necessity for meeting the high costs of buying a house. As this involves a large sum of funds, lenders accept Home Loan applications after much deliberation to ensure that borrowers can repay the loans. However, following due process may take considerable time. If one understands the various aspects of housing finance and does their due diligence, it can guarantee swift and smooth Home Loan approvals.  

How Can I Get a Home Loan Fast?

Interested individuals must follow these smart tips to get a Home Loan faster: 

Know Your Financial Limits 

Most lenders will have a minimum income requirement which will vary with each city. See if you have the requisite funds to obtain a home loan and repay the EMIs each month.  

Make a Bigger Down Payment 

Try to pay at least 20% of the property’s value as a down payment so that you can borrow a smaller loan amount to make the EMI repayments easier. Lenders view such applicants as low-risk customers and may offer a better housing loan interest rate. 

Maintain a Healthy Credit Score

Lenders will first check your credit score when you apply for a loan to assess how well you handle your finances, investments and past credit, and how much you can pay on the proposed loan. A clean credit record helps you maintain a good credit score of 750 or above, which is the general requirement for most lenders.   

Get a Co-Applicant 

Bring an earning member of the family on board as your Home Loan co-applicant. The combined income of both applicants will raise your spending potential and financial standing.   

Fill out the Application Correctly 

Provide accurate information in your application form leaving no room for errors and attach the correct set of documentation as required.  

Advantages of Applying for a Home Loan Online

Online Home Loan application speeds up the loan process. One can fill and submit the form in minutes. Some lenders even guarantee Home Loans in 10 minutes, where one may receive a pre-approved offer and a digital sanction letter with easy sanctions. They may also tender an instant Home Loan without documentation to their preferred customers. Moreover, if you seek to shift your existing Home Loan or avail of a new one, you could further apply for a sizeable Top-up Loan online, provided you fulfil the lender’s home loan top-up eligibility criteria. 

Lenders offer free access to online financial tools so that applicants have a better understanding of their Home Loans better they apply. They also extend pick-up services of documentation from your doorstep for speedier approvals. Even after you obtain the loan, you can securely track your loan account and payments through the lender’s customer portal or mobile app.

A Step-by-Step Guide to the Online Home Loan Application Process

Availing Home Loans involve longer procedures due to a series of checks and measures at multiple levels. While some lenders may have minor variations in their housing loan procedures, the standard process is outlined below:

1.Submit the Application Form and Attach the Documents 

The loan process begins with the application form. You need to provide all the information as asked such as your personal details, address, income details, educational qualifications, employment details, property details, estimated cost of the property and present means of financing it. Next, you have to attach certain documents which include:  

• Proofs of income, identity, age and address 

• Employment details 

• Educational proof (school/diploma/degree certificate) 

• Bank statements 

• Property details (if finalised) 

Additional Read: Complete Checklist of Documents Required for Home Loan 

2.Pay the Processing Fee

Lenders levy a processing fee when you submit your online loan application, which can go up to 7% of the loan amount, along with GST as applicable. 

3.Discussion with the Lender

The lender may discuss your requirements and repayment abilities at length as they begin processing your application. 

4.Document Validation

A representative from the lender’s office might visit your residence and/or office to verify the details furnished in the loan application: 

• Residential and workplace address 

• Employer credentials 

• Workplace contact number 

• Residential contact number 

5.Sanction/Approval Process

Thereafter, your lender will minutely evaluate the following: 

• Your age, qualifications and experience  

• Previous transactions with the lender 

• Monthly and yearly income 

• Current employer/company and type of job  

• Nature of business (for self-employed applicants) 

• Loan repayment ability with the set interest rate 

If the lender is satisfied with all the details, they will approve your application in no time.  

6.Processing the Offer Letter

Once they finalise the loan amount, your lender will send you an official sanction letter containing: 

• The loan principal to be sanctioned 

• Interest rate on the loan amount 

• Type of interest: fixed or variable 

• Tenor details 

• Mode of loan repayments 

• Terms, conditions and policies of the loan 

Upon receiving the offer letter, the applicant has to sign the duplicate copy showing acceptance of the loan terms. One must read the document carefully. Verify and renegotiate the interest rate, if required, or any other terms that may not be acceptable to you. 

Additional Read: Home Loan Disbursement & Sanctioning Process 

7.Legal Verification of Property and Related Documents 

The lending institution will carry out a legal check of the property and authenticate the documentation with the assistance of their lawyer. All original property documents must be handed over to the lender as security until the loan is repaid in full.  

8.Technical Check and Site Estimation 

Property experts will survey the property inspecting its stage of construction, work progress, quality, completion time, layout, requisite NOC and permits from the authorities, market price, and environmental areas.  In case of a resale or ready flats, they will scrutinise the building age, quality, maintenance, surroundings, valid permits and approval plans.  

9.Drafting the Loan Deal 

Your lender will estimate the current value of the property after inspection and finalise the loan deal. Their company lawyer will draft the official loan documents, stamp and sign them. 

10.Signing the Loan Agreement

Once the paperwork is in place, the applicant has to sign the loan agreement. You need to submit post-dated cheques for the initial 36 months or as agreed with the lender.

11.Loan Disbursal 

The Home Loan amount will be transferred directly into your bank account or your lender might even issue a cheque. The loan interest may be charged from the date of sanction so do not delay the process steps thereon. 

Additional Read: Common Myths About Home Loans: All You Need to Know 

To Conclude

Whether you apply for a Home Loan offline or online, the application process remains the same. The latter lets you apply for a Home Loan without visiting the lender’s branch office through the efficient use of digital lending platforms. Online lending has simplified Home Loan applications and all related procedures to a large extent ensuring easy access to safe and secure credit information, transactions and regular account updates. 

Read Also: How to Connect with Bajaj Housing Customer Care