Have you decided on securing your own residential property? A home loan can be the perfect way to support your dream. Home loans are one of the most widely available funding schemes and are offered by most leading banks. They are secured loans that let you borrow a major part of the total payable amount on your home. You then payback the loan in easy installments over a tenor period.
A home loan involves a verification process that is carried out by the bank. When you apply for a loan, the lender requires you to provide them with the essential details. This includes details relating to your personal information, employment, data on income and more. The bank also need you to generate information on the property that you are interested in purchasing. Post this step, there is a verification carried out based on the details that you furnish.
Here are the documents that you must provide and the steps involved in the verification process of the home loan:
Document essentials: Depending on the bank you pick, the requisite documents will include an identity proof, address proof, a minimum of 6 month of income proof and KYC documents. Typically, banks also need you to provide the documents of the property that you will be purchasing. Self-employed applicants must provide proof of their business and the number of years that it has driven profit.
Process of loan verification: The verification process begins after the loan application is approved. You as a borrower provide all the scanned copies of the requested documents. When you complete this, a through verification is carried out to ensure the authenticity of all the given information. This includes verification of the personal details, address, bank details, financial statement, etc.
Banks also conduct a legal verification of the property that you wish to seek the loan against. The relevant property papers such as the property deed, title deed and the NOC are verified. Depending on the bank providing you the housing loan, you may also be asked to submit additional property documents. Technical checks on the property, such as evaluating the quality of the construction, age of the property and certification validity, are part of the verification process.
Verification is an important part of the loan lending process. The bank works to understand your repayment capabilities and the total value of the residential property that you wish to own. Additionally, the information is used to ensure that you are offered easy EMI structure which conveniently fits your profile.