Step-by-Step Guide for Home Loan Application Process | Kotak Mahindra Bank

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13 AUGUST, 2019

Gone are those days, when the process of getting a home loan was lengthy and tedious. This is the era of hassle-free quick home loans. Nowadays, the processing of a home loan application has become faster once the applicant submits all necessary documents. Here is a step-by-step guide to understand home loan process in India.

Step 1 : Application of Loan

The process of availing a home loan begins with the application form. You can apply online for a home loan with help of various bank’s websites which also provide self-help tools like a home loan eligibility calculator and a home loan EMI calculator online.
To complete the home loan process, you need to submit certain documents that act like identity proof, address proof, income proof and so on. You also need to provide details of your financial assets and liabilities. Following are few essential documents, you need to submit in order to complete the application process,

Age proof
Address proof
Income proof
Property documents, in case the property to be purchased is finalised
Employment details, including a summary stating the working nature of your employer.

Nowadays, banks provide door-step services to their customers, where their representative will come and personally collect all the documents required to get a home loan.

Step 2 : Paying Processing Fees

Home loan processing fees are the mandatory charges you need to pay to the bank to process your application. Every bank has its guidelines regarding processing fees. The home loan processing fee is a one-time non-refundable charge that borrowers are required to pay to the home loan lenders.

Step 3 : Discussion With Your Bank

After paying the processing fees, the bank or loan lenders check the authenticity of documents shared. This process generally takes two to three days; however, if the documentation is done correctly, this part of the home loan process gets over quickly. Later on, the bank asks the applicant for a face-to-face interaction to discuss further details of the home loan.
The discussion is generally meant to confirm the repaying capabilities of the applicant. However, you can clear your doubts regarding the home loan during a conversation with the bank. Banks help their customers at each stage of the home loan application process.

Step 4 : Approval of a Loan

Every bank thoroughly verifies all the documents submitted by the applicant before sanctioning the loan. The approval of your home loan application is dependent on the bank as well as the documents you have submitted. If all works well, your home loan gets approved, and you receive a confirmation letter stating the amount to be sanctioned by the bank.

Step 5 : Processing of Confirmation Letter

After receiving the confirmation letter, you need to submit its signed copy which acts as your acceptance to the offer provided by the bank. Then, the bank processes the documents of the property to be purchased. Many banks often send their representative to inspect the premises of the property to be bought.

Step 6 : Disbursement of the Loan

Once the inspection of the property is done, you need to sign the agreement of the home loan provided by the bank. After that, you receive the loan amount via disbursement mode opted from your end.

Additional Read: How to Plan your Home Loan Down Payment

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

A Step-by-step Guide To Understand Home Loan Procedure