8 Steps to be followed for Shubham’s Home Loan Process

A home loan is the first step to fulfilling your dream of owning a home. It is generally taken either to buy a house, construction of a house, or renovation.

While buying a dream home, you need to have a clear understanding of the home loan process in India — right from approval to disbursal. The following steps will take you through the entire process to avail of home loans from Shubham.

Step 1: Fill the Loan Application Form & Attach the Documents

Filling and submitting the application form is the very first step while applying for Shubham’s home loan wherein you need to give your professional and personal information, the details of the property, the estimated cost, and your assets and liability details.

Along with the application form, you are also required to attach the following documents:

• Identity proof
• Address proof
• Income proof
• Proof of educational qualifications
• Age proof
• Bank statements

Step 2: Pay the Processing Fee

The processing fee is generally a percentage of the loan amount. While submitting the home loan application form, you will also be charged with a minimum amount of chargeable.

Step 3: Evaluation of Application

It is essential to understand how Shubham evaluates home loan applications to get easy access to loans. The bank needs to know about your history of debts and the present income to debt ratio.

The evaluation process takes a time of maximum one day or two. You need to provide the bank with accurate information, especially your financial details, as banks sanction loans only when they are satisfied with your credentials.

Step 4: Sanction of Loan and Credit Appraisal

The final loan amount sanctioned by Shubham is according to the loan value. Your creditworthiness is calculated by the bank based on your income, age, nature of work, bank statements, and CIBIL report and then plans out the maximum loan amount that they can offer you. Make sure to read all the details carefully.

Step 5: Validation and Valuation of Property

Shubham representative will visit the site of the property before they give the go-ahead to the loan you have applied for. An expert representing the bank goes out to the location of the property to conduct validation and valuation checks.

Step 6: Processing the Property Papers Followed By a Legal Check

Once the applicant officially accepts the offer letter, Shubham next concentrates on the home property, he/she intends to purchase. Even if it is not finalized, the applicant can request a time duration to select one.

Step 7: The Final Loan Deal & Signing the Agreement

A home loan agreement is a legal document that regulates the terms and conditions of the loan and the creation of a mortgage on the home.

Before the disbursal of the home loan amount, the borrower is required to sign and execute the loan agreement.

Step 8: Disbursement of Your Home Loan

The final stage of the loan process is the disbursement.

So, what is a disbursement?

It is the stage when the lender pays out the loan proceeds to the seller in case of resale property or the builder in case of a new property depending on the terms of the home loans agreement you have entered into with the lender.
Source by https://medium.com/@shubhamhousingfinance/8-steps-to-be-followed-for-shubhams-home-loan-process-cb4c5e95fb30