To begin with, it is essential to know what the home loan disbursement process is. It is a process that involves the money transaction from the finance company (lender) to the borrower. You need to know that the first step consists of the home loan, and the disbursement is the final stage of fulfilling your dream of owning a house. So, the disbursement process has to go through several stages of verifications to avoid any hiccups. A reputed finance company will also guide you to find a way to low-interest home loans. So, the three main stages involve an application, sanction, and disbursement.
Let us now see the stages of home loan disbursement:
- Application:
The initial stage involves filling an application, and the process is similar to that of any other loan process. Here, you need to fill out the home loan application of the lender along with the required documents, which mainly include KYC and home loan documents. Apart from this, you need to give complete detail about your income, investments, property, bank statements, income tax returns, sale agreement, and more in the given application. Furthermore, the details and documents you provide should be legally applicable and correct.
READ ALSO: Should You Opt for A Marriage Loan to Getting Your Wedding Financed?
- Sanction:
After applying, the lender plays a crucial role in screening and verifying the given documents. They examine and analyze your application form along with their legal experts and lawyers, both legally and technically. Once they are satisfied with the documents and the verification process is completed, you will receive a home loan disbursement letter that will confirm the status of the loan sanction. The letter also includes the date of instalment, disbursed amount, loan tenure, and interest rate. To make it clear, you don’t need to receive high-interest loans only consistently; it depends on your necessity, so you do receive low-interest home loans too, as the bank will bring on the interest rate as per the day on which your disbursement amount will be processed.
- Disbursement:
The final stage is the disbursement of the loan. So, after you have received the sanction letter, you have to follow a few procedures, like you need to produce your contribution receipt or you can say the down payment receipt, and then you will be asked for the first instalment at the given date by the lender. Once it is done, the process also includes the date of instalment, disbursed amount, the tenure of loan, interest rate. After completing all the required formalities, the bank will process the home loan disbursement amount. It can be either partial or total disbursement based on the strength of your credit score, and it also depends on the progression of the property.
There are different loan amounts like; a home loan in Delhi is different from that of other metro cities, and it keeps on varying.
Conclusion
So, now you are clear with the process and the documents required. If you are looking for a home loan in Delhi or any city, you can go through Finway as it is one of the most honest and component financial services companies with a wide network. Above all these, it is your responsibility to choose a trusted lender to avoid any fraud activities.
Related Topics:
Here’s How You Can Repay Home Loan Quicker?
Learn The 5 Mistakes Which You Need to Avoid in Loan Against Property!
