Borrower’s Checklist for Selecting a Home Loan in India

Like any significant financial commitment, the home loan application should also be done with due diligence. A home loan is imperative on your journey to owning a home, and even the slightest default can cost you the financing you need to make your dream come true. While the things to check are not complicated, a home loan aspirant should be meticulous in gathering all the information they need before applying.

To make preparing your home loan application as smooth as possible, we’ve put together an easy-to-follow checklist for all home loan applicants. Browse this to have a hassle-free borrowing experience.

A home loan checklist for future home buyers

Having all the necessary information about the home loan or lender you are considering will help you better prepare your application. Knowing exactly what you want will also help you avoid simultaneous requests from different lenders as it will hurt your credit score.

Here is everything you need to check before applying for a home loan.

Interest rate

Needless to say, the interest rate you get is the deciding factor in any home loan – it alone can decide how much your decision to get a home loan may cost you. Serving a home loan is a long-term financial commitment, and if you don’t get the interest rates you’re looking for, paying off it will seem like an overwhelming burden on your finances. This is why it is essential to obtain a loan at a rate that best matches your financial situation.

Before approaching a lender, you can use one of the mortgage interest rate calculator and set up a provisional EMI forecast that shows you how much you’ll have to pay each month, based on the interest rate you select. Having a realistic idea of ​​your IMEs will help you prepare for the release of upcoming interests. You can also choose between a fixed interest rate and a variable interest rate – and approach your lender accordingly.

If you have a strong credit profile and meet the mortgage eligibility, don’t be afraid to negotiate a better mortgage deal, to make sure you get the most savings on your mortgage.

Documents required for a mortgage

We’ve compiled all the paperwork that lenders typically need, so you can make sure everything is in place up front, saving you valuable time when applying for your loan.

Category Documents
Any of the identity documents PAN, voter card, driver’s license, passport (valid)
One of the proof of address PAN, voter card, driver’s license, passport (valid), electricity / phone / water bill
Others Passport-format photographs, proof of business continuity for 5 years (for the self-employed)

Proof of income

Individual Documents
Salaried and self-employed borrowers Form 16 or latest pay slips or RTI

Bank statements for the last six months

Associated fees

No one likes paying surprise surcharges on top of big expenses, but the truth is, home loans come with an assortment of additional costs. Make sure you read your lender’s policies before approaching them, so you get a realistic idea of ​​how much you will need to shell out upfront and not be surprised when you see the debts.

While most lenders don’t charge a prepayment penalty for foreclosure on your loan *, you should check to see if closing your loan early could cost you money, as it could be a significant amount, if they do. make.

Credit profile

Your credit profile determines the course of your borrowing journey. If you have a strong 750+ credit score, we plan for a smooth borrowing experience where you can meet your lender’s eligibility criteria and qualify for the loan amount you want. However, if your credit profile is not up to par, lenders may have reservations about sanctioning a low interest mortgage loan up to you, because it puts your repayment capacity under control.

Your outstanding debt, existing financial obligations, repayment history, and credit patterns influence your credit profile and give your lender an idea of ​​how you might behave as a borrower. We recommend that you check your credit score before applying and do everything possible to maximize your chances of getting approved for the home loan of your choice.

Pre-approved loan offers and quotes

Having a pre-approved loan offer can give you the leverage you need to negotiate a profitable deal with your developer when you buy your home. It presents you as a reliable buyer who already has the necessary funds for the property.

Lenders come up with pre-approved offers after they have granted their home loan application based on their income and eligibility parameters. If your request is up to their satisfaction, then the lender makes a pre-approved loan offer which greatly reduces the loan process time for the applicant. It also gives you a clear idea of ​​what your home buying budget might be and guides you to homes that fit the bill. Once you have decided which property to buy, the only things that need to be done are the detailed appraisal by the lender you have chosen and a legal verification of the property, as a result of which your loan amount is paid out. your account, which does not delay your trip. to buy a house.

The last word

Now that you are armed with the borrower’s checklist, use your own judgment and focus on who you want to borrow from. Bajaj Housing Finance Limited home loan is unmatched in a number of ways, including its competitive interest rates and affordability. You can get a loan amount of Rs. 5 Crore and even more, based on your eligibility, and repay it comfortably over 30 years, without compromising your financial future.

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