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Purchasing your home can take a long time and you may have to be patient until you find just the right one. However, if you’re planning to take a home loan, it is always better to know beforehand what you may require for a successful application of a home .

Gone are the days of patiently collecting sufficient funds to purchase a home; a home which would remain in the family for decades to come. The times, they have changed and how. Nowadays, banks are prepared to give on the spot approvals on home loans and there are previous tie ups with builders in order to process a speedy loan process. A home can be purchased in a few weeks and there have been cases where people have moved into their dream home within a few days of obtaining their loan.

Home Loans have become one of the most sought after financial instruments and have become the reason of happiness for millions of people in India. Banks and financial institutions ensure a smooth, hassle free process for getting loans and it is estimated that 70-80% of salaried class employees and 15-20% of self employed people avail of finance through banks and financial institutions.

It is important to understand that while taking a loan may seem easy, it also means that you are taking a financial obligation for a long time; in some cases loan tenures extend up to 20-25 years. Read below to understand certain nuances of a home loan and ensure that you take the right steps in the right direction towards purchasing your dream house.

Acquiring a home loan is a crucial part of the home buying process. Therefore, prior knowledge of home loans so that you choose the one best suited to you is a must. The following points we believe will help you to get a better insight into the dynamics of home loan selection process at NorthernSky:

It is necessary to assess all the banks and their respective offers, get the best offer after through consulting and ground work. Then you can submit your application form.

After submission of application form, the applicant will be called by the bank for a face to face discussion to evaluate the papers and decide on the payment capacity and to decide on the loan amount etc.

Pay your installments leisurely over a period of 20 years or more—that’s what the typical sales person of a financial institution is likely to say. Usually first time borrowers make this cardinal error and assume that the longer the duration for repayment the more financially viable it will be. However, opting for a long loan tenure also means that you may end up paying higher interest to the bank, over an extended period of time. Not vice versa as it may seem to be.

Be careful in what you select and make sure you consult an experience advisor.

Consider how much of money you can allot for the monthly installments and try to limit your total EMI by setting it in the average range of 50-65 % of your net salary. Enquire with the bank about the most ideal tenure and opt for one which is comfortable to pay and doesn’t take years to foreclose.

These are the two words that any first time home buyer might dread. Buying a home is not easy and putting together the money for the down payment can be quite tedious.

Speak with the banks when you’re starting the process and simultaneously enquire with friends, colleagues and acquaintances to find out the best financial institutions which they may have associated with in the past.

A field investigation will be conducted to check all the information stated in the application form and qualified bank employee or a verification agent will investigate and verify all the details. The representatives will visit the office and residence of the applicant to verify the details. In the process,

the references mentioned by the applicant will also be checked and cross verified.

After this, the bank will verify the applicant’s repayment capacity and if it is not satisfactory, the loan will be rejected. It will check the ability of the borrower to repay the loan amount with interest on time along with the previous loan transactions track record. If the bank finds that the applicant can repay, then the loan will be sanctioned.

Once the loan is sanctioned, the bank will send an offer letter to the applicant with details regarding the home loan such as loan amount sanctioned, interest rate for the loan, type of interest selected: fixed or floating interest rates, loan tenure, mode of loan repayment, special scheme or offer if applicable and the general terms and conditions of the home loan approved.

If you are satisfied with all the norms, then you can provide an acceptance letter with your signature to the bank to acknowledge the sanction.

Be sure to read each and every article with utmost care and understanding

These days, the bank requires all the legal documents related to the property for availing the loan. The bank will perform legal check and these documents will be detained by the bank till the applicant repays the loan amount.

Along with the legal check, the bank will also perform a technical valuation of the property. For under construction projects, the bank will check the quality and progress of the construction work along with the locality valuation to evaluate the value of the property. The bank has qualified valuators to assess the property value under established parameters. This is performed to ensure a clear title and if the property is viable and meets the valuation standards.

All properties at NorthernSky have clear documents and title deeds as our dealings are transparent.

After all the financial and technical valuations, the home loan registration process begins. The legal loan documents will be prepared on stamp papers by the bank lawyer. The loan agreement must be signed and submitted back to the bank along with post dated cheques.

After registration, the bank will disburse the loan amount based on the agreed terms of disbursal either as a full payment or partial payment mode in stages. Usually for ready possession of the property, the amount will be disbursed in full.

At NorthernSky we provide assistance for all the above steps and we also have a tie up with most major banks who acknowledge our credibility and quality.