In this progressive world where everyone is striving to become successful in distinctive ways, some of us gauge success through parameters such as bank balance, the car owned, and most importantly the house owned. Owning a house has been the dream of many of us, and thanks to the home loan facility, because of which it seems achievable even in this era of relentless inflation. There are several technical and legal aspects involved in buying a house. Here is a step-by-step guide that will help you prepare better for owning your dream house.
- Verification of Property Documents: Once you find the desired property/house, the next and the most critical step is to get all the property-related documents and legal documents checked from a lawyer. These documents include title deed, land use approvals from the municipal corporation, encumbrance certificate, occupational certificate, and receipts of property tax paid (in case of resale). Loan release document will also be required (if the property was pledged to a bank for a loan).
- E-Stamping of Documents:Another step involved in the home buying process is getting the sales agreement e-stamped. For ongoing construction, two agreements are made, one for sales and another for construction, both should be e-stamped.
- Submission of Documents to the Loan Provider: After collecting and getting the documents e-stamped, you need to submit the loan application form by attaching along all the necessary documents related to property and income.
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After these, legal and technical evaluation of the property is conducted by the lender, wherein your submitted documents are checked for authenticity and property is reviewed against various standards. Post this, in case of successful evaluation, the value of the property is calculated and the loan amount is ascertained.
- Collection of Valuator Statment: After the successful valuation of the property by the panel, you need to collect the Valuator Statement.
- Submission of Original Documents for Loan Sanction: The next step is the submission of the original documents to the lender. Carry all the original documents submitted along with the online application.
- In case there is a guarantor, both borrower and guarantor need to be present at the bank for documentation.
- If there is a landlord share, presence of the builder is also mandatory.
- Collecting the Loan Agreement: After loan sanction, the bank then prepares a loan agreement containing all the loan details along with the terms and conditions. Read thoroughly and duly sign it for acceptance.
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Also, mentioned below are some additional points that you must be mindful of.
- Collect NOC from the builder stating that the property is mortgage-free.
- In case of construction, a demand note stating the amount of money required for a particular stage of construction.
- Make sure that the demand note matches with the schedule of payment as per the loan agreement.
- In case of part disbursement, the borrower can ask for the next part of disbursement by sending an email to the bank.
This detailed guide would definitely help you to be well-prepared in advance for smooth processing and quick approval of the loan.
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