Owning a home is a dream we all cherish. Many a time the support from banks or financing services may be necessary to meet fund requirements. It is good to opt to buy a home, villa, or apartment from reputed builders only. This will be instrumental in expediting the loan approval process as well. Nationalized banks like State Bank of India follow a stringent verification process to confirm the property is authentic and ascertain your repayment capability.
Although the scrutiny of the documents may take some time, you can prepare yourself well, to get your home loan approved faster and easier. On one hand, the exhaustive inspection of the land and property documents by the advocates from the bank is beneficial to you too. It will ensure that the home you are buying has all the legal authorizations.
4 Tips for Getting your Home Loan Approved Faster and Easier
We are elaborating 4 tips here, for getting a home loan approved faster and easier. You can comply with those whilst approaching the bank for the loan.
1. Credit Score
CIBIL score is the basic thing that is checked by banks before going ahead with other formalities. Your credit score is a kind of financial bio about you. It will reveal your loan data, pending loan repayments, loan defaults, and your economical capacity to repay the loan. You must check your CIBIL score, to ensure that it is healthy enough, before applying for the home loan. Avoid having a negative credit score, which will impact your home loan application. The banks will reject the home loan application, from an individual with a negative credit score, mostly.
2. Joint Application
Applying for loans jointly with your spouse or parents can enhance your borrowing capacity manifold. However, you don’t have to request that much of a big amount. Apply only for the minimal, essential, loan. The banks will simply approve the loan in such a case. The guarantee from two individuals is beneficial for the bank as well.
3. Arrange All the Documents
The banks will not accept the application even if a single document is missing. You can go through their document requirements and prepare those in advance. Rather than to wait for the bank official to check the documents and ask for the missing ones. It will just cause an undue delay in the approval of your application. In addition, fill the bank loan application correctly.
4. Pay Higher Down Payment than Normal
Though this may not be possible for many, paying higher down payment than normal is another method for quick loan approvals. The banks need you to pay at least 20% from your pocket for the home. Try whether you can pay a higher amount or not.
Loans are an essential part of existence for every bank. However, they are taking by lending out money, to an individual, whom they know only through documents. This is the reason for their thorough verification process and detailed analysis of property documents. The main thing banks focus on is that they must be able to reclaim the amount if the individual defaults the payment. That’s why banks don’t approve loans for constructing a home on agricultural land.
Choosing a reputed builder will ease your process further. A builder like OMG Properties, who have created the identity through credible existence, adds value to the application for a home loan.
Also read: HOME LOAN TIPS FOR FIRST TIME BUYERS