As home loan interest rates are currently at record low rates (you could avail of loans for an annual interest of less than 7%), most people are interested in investing in property. In fact, many of you may already have submitted your home loan application. At this point, you may wonder what you should do, to ensure that the loan is processed smoothly and the bank disburses it soon. If you have already paid the earnest deposit, you must be aware that a lot hinges on the home loan application approval, for the deal to reach its logical conclusion. As it is crucial to get an approval for the amount you have sought from the bank as credit, we look at some of the precautions that the borrower must take.
Ensure that you are available
Banks officials may try to contact you on your mobile phone, to seek confirmation about the many details provided in your application form. The call could also come, to ask you to provide additional documents. Mid-way, banks often also reveal several hidden charges on home loans that a buyer may have to pay, as part of the liabilities of an applicant. So, ensure that you do not miss the call, if the bank officials were to get in touch about anything. In case that happens, the home loan application processing may take longer.
Prepare for the legal and technical verification of the property
Your availability, however, should not be restricted only to calls. For the bank to complete the most crucial part of the processing, it will send two different teams for the legal and technical verification of the property. On both these occasions, the buyer/s will have to be present at the house they intend to purchase. They should also ensure that the seller is present, along with all the property ownership-related documents and payment receipts.
It is only after the legal and technical teams are satisfied with the property and its legal title that they would recommend to the bank to process your request. If you are not available for these visits, the processing will take much longer.
Be present at the address you have given
The bank will also conduct checks on the applicant. For this, bank representatives may visit your current address (whether it is only a rented accommodation or your own home) and your office address. They will make a visit at an appointed time, during which they would expect you to be present. This is a crucial part of the home loan processing and could be completed quickly, with the borrower’s cooperation.
Inform the people given as references for the home loan
In your home loan application, banks ask you to provide the name, contact numbers and addresses of two people who may know you well. They specify that these contacts should be in no way your relatives. Home loan applicants mostly provide the names of their friends or co-workers. Note that bank representatives would contact both these people separately and inquire about you and your relationship with them. They may also ask the person about his profession and address. This means not only you but also your contacts should be available to receive calls from the bank. If the bank fails to get in touch with your contacts even after repeated attempts, it would delay the entire process. Inform these contacts in advance that you have provided their details to the bank in connection with your home loan application and that they should expect a call about the same.
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FAQs
Do banks send people to check on the buyer before giving a home loan?
Banks run several checks on the buyer and the property he intends to purchase while processing the home loan request.
Does a buyer have to pay a technical evaluation fee to the bank to get a home loan?
Banks charge a flat fee for carrying out the property’s technical assessment. This could also be a part of the processing fee.
How many witnesses’ names are required in the home loan application?
Names of two witnesses are needed in the home loan application.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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