The news of your home loan being sanctioned can be like music to your ears. Although the home loan process is relatively simple and quick today, it can still be unnerving and stressful until the final sanction letter arrives at your doorstep and you can take a sigh of relief. Most online guides talk about the process of applying for a loan, ways to ensure that you get affordable home loan interest rates, how to use a home loan EMI calculator, etc. But nobody really talks about what happens after a loan is sanctioned. Let’s find out:
- Step1: You will receive the home loan sanction letter: This letter will be sent to you by the lender. The letter will include the sanctioned loan amount along with the tenure and home loan interest rates charged on your loan. The document will also contain information on tax benefits that you can avail of from your loan, the mode of repayment, the type of interest charged on your loan – fixed or variable, and the terms and conditions of the loan provider.
- Step 2: You will be asked to sign the acceptance letter: The lender will send you a copy of the acceptance letter along with the sanction letter. This document will confirm that you accept the loan amount, home loan interest rates, repayment mode and tenure, and all the other terms and conditions of the lender. You have to sign this document and submit it to the lender within the stipulated time mentioned in the letter.
- Step 3: The lender will verify your property: After receiving the signed acceptance letter, the lender will verify the property for which you require a home loan. You may have to provide a no-objection certificate, an encumbrance certificate, the title deed of your home, etc. The lender will conduct a legal verification, inspect the site for technical valuation, consider factors like the age of the property, the stage of construction it is in (fully constructed or under construction), whether or not it is being resold, and more.
- Step 4: The lender will disburse the home loan: After the property has been verified, the lender may or may not disburse your funds. If there are any issues found with the property, such as legal lapses, license issues, etc., the lender can withhold the loan. However, if everything is in order, the loan provider will send you an agreement letter. Once you sign this letter and submit it back to the lender, your funds will be disbursed to your bank account.
To sum it up
The loan process may sound intricate and elaborate. However, it does not take as much time and can be carried out in a hassle-free manner as long as you pick a reputable loan provider. A home loan is a massive undertaking and takes years of planning and requires calculations on the home loan EMI calculator. So, make sure that you pick a trustworthy loan provider with a customer-friendly loan process.