One day I will own my dream house – said by many! Everyone has a dream to own cozy and comfortable home. Often, success is measured with the help of parameters like gold jewelry, luxury cars, bank balance, and most distinctly the dream house. However, few parameters have made the process a little strenuous. Thanks to every home loan lender, who has made this dream come true for many.

Looking at what it takes to buy a home may involve various legal and financial aspects. A step- by- step detailed guide to apply for a home loan will surely help you prepare well for purchasing your longed dream home.

1.Loan eligibility: If you are planning for a home loan to purchase your home check on a few parameters, like check your credit score online . The bank will check your eligibility based on your income, existing loan, credit score, and financial statements. If the eligibility criterion matches their expectation, the bank representative will further explain to you how to get a home loan.

2.Verification of Documents: Hire a lawyer or a legal advisor to check your property documents, be it land or a house. The common documents are occupational certificate, land approval, a title deed, and property tax papers. Also, if the property you are buying has been pledged to any bank for a loan then the loan release document needs to be verified. The prime step must be verifying your documents as there is a lot of possibility of scam and fraudulent action.

3.E- Stamping the verified documents: You will have a sales agreement, which needs to be E- stamped. If your property is under construction and not ready to move, you will have two agreements done. One agreement for the sale and the other for construction needs to be E-stamped without fail.

4.Document submission: The documents need to be submitted on time to your loan provider. Be it a bank or any financial registered lender, you need to submit the full list of said documents. Along with the e-stamped documents submit your fully filled loan application form. Every document related to your property and your income needs to be submitted to the bank for processing the home loan.

5.Document authentication: Meanwhile, the lender evaluates the legal and technical aspects of the property along with your documents. Your documents and property papers are evaluated for authenticity. The property value is then calculated and the amount of home loan to be sanctioned is ascertained. All you need to do is, sit back and wait for your bank representative to get back to you.

6.Valuation statement: After your property has been successfully evaluated by the lender, they collect the valuation statement. A complete panel looks after the valuation and will help you will a detailed report.

7.Submission of original documents: Once you get your valuator statement from the panel you need to be ready with your original documents. Be careful to not miss even one document from the list. Carry your original documents along with the duly filled application form. If your property has a guarantor, then both the guarantor and borrower must be present for documentation. Also, in the case of a landlord share, the builder needs to be present at the time of the documentation.

8.Collect your loan agreement papers: Congratulations on your loan approval! Collect the loan agreement papers prepared by the bank. This agreement document is quite essential as it contains all the home loan details with terms and conditions stated. Be careful when you read it, without missing any clause sign it for your acceptance.

Also, a few steps like:

• Collecting the NOC from your builder to authenticate it as mortgage-free.
• The demand note needs to be similar to the payment schedule.
• If your property is under construction, make sure a demand note is issued which states the amount of construction that is pending.

A detailed comprehensive guide will definitely make your way easy towards purchasing your home. With these steps, you can make your home loan approval smooth and get yourself a comfortable home without a doubt. Acknowledge the steps and make the process of buying a property really painless.

Author's Bio: 

I am Ajay Singh, former Finance Advisor with more than 8 years of experience. I am a passionate trader, investment advisor and would love to help people in thier financial decision making.