Home is the place where you find solace and spend most of your time. It is one of those places where you enjoy the utmost comfort while living with your loved ones. All those working professionals or budding business owners wish to have their abode so that they can also live in peace. 

It is quite unfortunate that despite so much information readily available, many people don’t know how to make the best decision. In most cases, people don’t do proper research and end up making wrong decisions.

This post offers a step-by-step guide to avail of home loans, especially for first-time owners. Let’s start exploring how to make the entire process hassle-free. 

• Decide Your Budget

It is very important to set your budget before taking any further action. This is because you will be paying EMIs to the bank or financial institution without fail. Missing out on any EMIs will cost your credit score and credit rating. It is best to have a realistic budget so that you don’t find it difficult to repay the EMIs. Analyze your monthly expenses and then make a decision. 

• Look for the Best Property Within a Set Budget 

You will come across multiple property options to choose from. Most of them will look enticing but beyond the reach of your set budget. Always discuss with the property developer and let him know your expectations regarding the home and budget. Never stretch your budget, even for a few thousand, because, eventually, you will be paying interest for the availed amount. 

• Get Qualified for the Loan from the Chosen Vendor

Once you choose a desired property, it’s time to choose the best loan agency. Never be in a hurry to choose the right loan vending agency. Take your time to do proper research in finding the best vendor. Read all the terms and conditions, ask for hidden charges, and, most importantly, be very considerate about the interest rate. Once done, apply for the loan and start the process. 

• Let the Property & Personal Verification Happen

Once you fill up the loan form, the concerned institution will start the verification process. There will be personal verification as well as property verification. The institution will check your monthly income, is there any existing loan, is there any other liability, etc. 

The verification team will also verify your given home address. This is done to ensure that in case of any fraud, they can track you easily or take over your home as a mortgage. It’s nothing to fear, and this is quite normal. 

When it comes to property verification, the vendors check whether the property you have chosen is constructed by abiding by all the norms. The institution will also check whether the property has a green flag from regulatory bodies like municipal corporations, land and revenue offices, etc. 

• Pay Processing Fees

After the verification process is complete, it’s time to pay the processing fees. The amount of processing fees varies from one institution to another. It is important to note that the amount you will pay for processing your application is not refundable. Also, it is not certain that your application will get through. 

In such cases also, you cannot expect or demand the given processing fees. Having said all this, if your documents are accurate, paying the fees marks the penultimate stage of the home loan application process because people get confirmation mostly after paying the processing fees. 

• Get Approval from the Vendor

This is the step where your concerned vendor will inform you about the home loan application process. You will get notifications through email, message, or even through call. Again, since you have submitted your application and paid the processing fees, your application doesn’t need to get through. Maintain a cordial relationship with DSA Loan Agent to get regular updates about the application. 

• Step into Your Own Home

Now that you have completed all the steps, it’s high time to embark on your journey in your new home. Before stepping ahead, check everything starting from the flooring, colors used, tiles used, bathroom fitting, etc. 

Make sure to check each and everything and tally them with the details mentioned in the agreement. Never forget to ask for the “Occupancy Certificate” from the property developer. The document is important to apply for electricity and water connections. 

Hope the steps explained are very insightful and you have the step-by-step guide to follow before investing in your new home. Please feel free your share your insights regarding the discuses below in the comment section.