Your dream Your home - Part One

Hello Everyone,

Its been my privilege to serve you and I have been receiving many queries about the Home Loan and the prerequisite about the process and procedure.

Almost all banks use the same process and procedure, here is the document check list, eligibility criteria, calculation of eligibility and much more

"Home Loan : A loan advanced to a person to assist in buying a home or a flat"

Today's scenario most of the banks are offering Home Loans at attractive prices and its starts from 10.10% to 12.50% ( depends on banks and property which you finalize)

List of documentation to process Home Loan for Salaried :

1.      Age Proof

2.      Identification proof

3.      Address Proof (Residence)

4.      3 Months pay slip

5.      2 Year Form 16

6.      Form 26 AS For 2 years

7.      Loan Repayment track record

8.      Six months saving account statement where salary is credit

9.      Company I D Card Xerox

10.  Qualification Proof (Degree Certificate)

11.  One pass port size photo

12.  One P F cheque 5618/-for login fees balance at the time of disbursement.

Co-Applicant Documents

Note: If income is not considered only 1, 2, 3& 11 documents are required else all documents to be collected if income is considered for loan

Property Documents

Sale Agreement

Sale Deed

Mother Deed

Katha Certificate

Katha Extract

Latest Tax Paid receipt

E C for 13 Years (Encumbrance)

Building Plan & license for construction

Any other property related document 

Eligibility criteria - Basic calculation :

Every bank works on a different criteria which starts with 55% to 65% funding according to your salary income :

For Ex : If your salary is around 1 lakh (excluding your spouse income) and your eligibility is around 55 lakhs to 65 lakhs and if you include your spouse income then eligibility will increase according to her salary grid.

Process and procedure :

There are two types of initial verification happens :

1. Paper validation - Property papers will be checked by the legal authorities especially lawyers who has been appointed by the banks to verify property papers.
2. Technical team who does all technicalities of the property and valuation will also be done.

Note : Usually property will be undervalued by the valuators.

Eligibility Criteria :

Loan amount will be sanctioned according to your eligibility, but please don't consider that you are eligible for full loan amount, there are other parameters to get the actual loan amount sanctioned.

• If the property is getting registered and it is in composite loan (Site + Construction) then the bank may fund according to the client requirement which may be market value/ Govt value/ registration value then the amount will be restricted to only 50% to 60% (depends on bank to bank) - Site + Construction
• If the property is getting registered at the actual amount then bank will fund up to 80% ( depends on bank to bank) - Flat purchase
• If the property is under construction (Flat purchase) then the funding can be at market value and it can  be funded at 80% as well (depends on bank to bank)

Note : The above consideration will be including the registration fee as well.

Some more important information will be posted in next blog...