Home Loan Verification Process: What to Expect and How to Prepare

The demand for home loans has increased in the recent past. However, all lenders have strict home loan eligibility requirements and only those borrowers who fulfil these requirements get approved for a home loan. Those who do not meet the qualifying criteria get rejected by lenders. Therefore, sometimes, in very rare cases, when borrowers want to be approved for a loan at any cost, they lie in their applications. The home loan verification process involves steps that allow home buyers to verify the information provided by a borrower, especially the information regarding the market value of the property. Lenders do this not only to ensure the veracity of claims by the applicant in their application but also the discern the correct value of the property and therefore, decide the right loan amount to be sanctioned.

Borrowers applying for a home loan must keep in mind that during the home loan verification process, their lender will ask for certain documents. These documents are important as they ensure that the property has a clear title and the loan amount is being disbursed into the account of the rightful owner of the property.

So, what does the home loan verification process entail? Here is a guide to home loan process step by step.

- The first step in the process is applying for a home loan. Now, borrowers can apply for a loan both online as well as offline. Whatever medium you choose to go for, you will be required to fill out a home loan application form.

- While filling out the form, you will be required to attach certain documents, such as address proof and KYC documents. You will also need to provide income-related and property documents. These documents will help your lender understand the EMIs you can afford to pay each month as well as gauge the correct value of the property against which you plan to avail yourself of a loan.

- Once you have submitted the application and the documents, your lender will verify the authenticity of the information provided by you. Most lenders hire an expert to verify the authenticity of the documents.

- If your lender is satisfied with your credit profile and all the information provided by you, they will release a home loan sanction letter. This loan sanction letter will contain important details, such as the loan amount that your lender plans to sanction, the rate of interest they will charge you, the type of interest rate you are being offered, etc.

- If you are happy with the loan offer and agree to the terms and conditions mentioned in it, your lender will move to the physical verification of the property.

- While conducting physical verification of the property, your lender will hire a legal expert to go through all property papers and ensure nothing is troubling about them. Your lender will also hire another expert who will check the property from a technical point of view.

- If the property passes all checks, your lender will create a final loan agreement. They will ask you to visit their office to sign this agreement. Once you have signed the loan agreement, your lender will work on disbursing the loan money into your account. You can expect to have the loan money in your account within a few days of property verification.

- Once you have the money in your account, you can go ahead and complete the property purchase.