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The home loan process decoded for you

Home loan is a terrifying process for most customers as it sometimes turns out to be lengthy and delays in disbursing money could attract penalties, much to the woe of customers.

This blog endeavours to demystify the process of availing home loans so as to help customers.

Buying a home in a metro like Bangalore is many a customer’s dream today and even when he/she identifies the project they wish to invest in, making the financial decisions pertaining to it aren’t all that easy. While most people hand out a token advance and then think of the financial arrangements to be made, others take a more cautious approach and give it thought beforehand.

Builders usually require a portion of the payment beforehand for allotting the flat/apartment in question and only then proceed with the agreements – sale and construction. While most builders have a construction linked plan, there are a few others who might require a different payment plan. If you have decided to avail home loans, you better get the legal documents and all other relevant paper work from the builder cross checked by the bank or financial institution from which you have chosen to avail the loan.

Once the legal due diligence is over, you can approach the bank for a loan and they will determine the loan amount based on two things: project value, your eligibility. Whichever is the lower of the two shall be granted and the bank will require you to pay processing fee, legal fee and go through with the loan process and documentation (entering into a loan agreement) before they disburse the amount required.

You may request an initial amount and full disbursement in the next instalment in case the house has already been constructed. Otherwise, the bank will disburse only based on the construction stages and that too after inspection. There are options such as pre-EMI, paying the EMI as soon as you get one instalment and so on available. You must enquire about various options and also whether there are possibilities wherein you can pre-close the loan and what sort of a fee it would attract.

The home loan needn’t be a long drawn process; if you understand the steps involved and if the builder helps you with the required paper work, you can sail through the process with ease.

NBR Developers have projects that are pre-approved by banks and leading HFLs and it becomes a cake walk for customers to avail loan with such builders. Name any project from NBR – Trifecta, Green Valley, Homes, Wind Chimes; all of them are approved by all authorities and leading financial institutions. Availing home loans in such cases are pretty easy and quick and the buyer needn’t experience hassles of any sort at all!