Are you thinking of purchasing a new home? If your answer is yes, you will head on to making the most critical financial pledge for a lifetime. For most salaried persons, buying a home is a long-cherished dream. Moreover, getting your home loan approved is not a single-day activity.
Approval for a home loan involves multiple steps, from applying for a home loan to final disbursal. Even a single blunder can lengthen the process further. Many creditors in the market offer pre-authorized home loans. The entire approval timing depends on the chosen application mode.
Where an online loan application takes much less time and minimum human intervention, a conventional hard copy application requires a longer period to get approved. Keep reading the guide to acknowledge the approval process of home loans and the causes of prolonged time of home loan approval.
Unveiling the Process of Home Loan Approval
Here is the step-by-step process of official home loan approval:
- Starting with an applicant submitting a home loan application form accompanied by required documents.
- In addition to the application, one must pay the processing fee to move forward with the process.
- Once you submit all the documents with a completed loan application form, the bank will thoroughly verify the papers.
- The banking officials will also take into account the terms and conditions for making the loan application get processed.
- Once everything is double-checked, the creditor makes the issuance of the approval letter of home loans.
- Now, the lender verifies the property from a technical and legal viewpoint.
- If the conditions seem worthy of acceptance, the applicant will make an agreement signing.
- Ultimately, the lender hand out the loan for buying a home.
What are the Reasons for the Prolonged Approval of Home Loans?
The approval time differs based on application type. Where it takes almost 5 business days to get an approved home loan for a salaried person, the loan approval process for the self-employed lengthens almost 10 days.
Take a look at some points that can delay the home loan approval time.
- There are many reasons behind the delay in home loan approval. It includes incomplete application, missing information, poor creditworthiness, mislaying of documents, low credit score, etc.
- If the lender finds any issue or complication in the property, it might delay the loan approval. It happens due to the missing approval of the builder or the non-existence of a clear title.
- The lender can’t proceed with the approval until the submitted application is duly verified.
- If the applicant can’t produce a well-grounded income tax return along with the documents, getting the loan approval on time will not be possible.
The best way to accelerate the loan approval process is to acknowledge all the documents that must be submitted with the loan application. To the best knowledge, it will be wise to connect with the customer care team and the customer relationship officer to get acquainted with the prerequisites of the HDFC home loan.
Getting a loan on time will be hassle-free if the applicant meets all the eligibility criteria and submits complete legal documents. If any issue has been found, or some important information is not present, the lender will stretch the loan approval time further.
