The reality of today is that home buying is nearly impossible without the help and support of external financial support – and here is where market lenders step in. Reputed market leaders offer attractive home loan packages to facilitate an individual’s dream of owning a home, or a property purchase as an investment.
However, what is often a roadblock in the home loan application process is the applicant’s lack of information. Before you start with your home loan application, we advise aspiring borrowers to due their diligence, and carry out a research that finds them the right lender that is attuned to their financial needs.
The Meaning of a Home Loan
When the term “home loan” is mentioned, most people think of a type of loan that must be used to buy a house. While this isn’t far from the truth, a home loan can serve other purposes as well.
Think of a home loan as a sum of money received from a lender to build, purchase, or renovate any real estate asset, which includes one’s house. To procure a home loan, note that the property you purchase, becomes collateral— a clause that allows the lender to repossess the property in the event of a loan default.
If you have applied for a home loan with Bajaj Housing Finance, the same home loan application process becomes as hassle-free and smooth as it can be. Once approved, you’ll be able to enjoy the many benefits that the lender is famous for – a sizeable loan sanctions, flexible repayment tenor, competitive interest rates, and the benefit of linking your home loan to the RBI Repo Rate.
Note that you can get a repayment tenor between 10 and 30 years with Bajaj Housing Finance and having a high credit score will help you negotiate for a longer tenor or a lower interest rate.
Procedure for Applying for a Home Loan
The steps that work as a precursor to a good home loan application is thorough research and ensuring that you meet your preferred lender’s eligibility criteria to the best of capacity.
Remember, you will most likely pay EMIs for a good part of a decade or two, which is why its imperative that you choose a lender whose home loan terms make the cost of borrowing affordable and that your repayment schedule is feasible. Bearing these in mind, below are some key points you must look out for, as you apply for a home loan.
This part includes getting your own affairs in order – your CIBIL Score and taking measures that enhance your credit score. You must acquire a copy of your credit report to make sure that details presented there are accurate. If you can – work towards clearing your other outstanding debts and obligations, so your repayment capacity bounces up – making you more viable for a high-value home loan.
Lenders are likely to examine your credit report while reviewing your application and offer attractive terms to those whose credit score is 750 and above. Remember that a rejected home loan application also negatively impacts your score, so one must work towards enhancing their score to maximise the chances of being approved.
2. Prepare Your Documents
Just as when opening a bank account, you will need to submit some documents to your potential creditor when applying for a home loan. While lenders have diverse lists of required documents, expect to submit the following:
- Proof of identity
- Proof of address
- Bank account statement
- Income tax returns
- Recent salary slips
If you are planning to apply for a home loan with Bajaj Housing Finance, we recommend going through the detailed list of documents provided on the company’s website. Keeping these documents ready will help you save time and energy. The lender also offers a convenient door-step document pick-up service, to make the documentation process easier for you.
Complete Your Home Loan Application
The easiest way to apply for a Bajaj Housing Finance Home Loan is through their official website. The lender is a frontrunner in the world of Online Home Loans and champions for digitization. As you apply online, you get to experience a hassle-free, speedy home loan application journey – complete in just three steps, and with a Digital Sanction Letter in hand, in just 10 minutes*.
- Accept the Terms and Conditions
The terms and conditions of a home loan are found in a sanction letter. Getting this letter signals that you’ve been approved for the loan. The letter contains details, such as the tenor, interest rate and the exact amount to be repaid in monthly instalments.
We advise that you study the terms closely. If unsatisfied with the terms offered, you’re free to negotiate better terms.
5. Await Disbursement
Bajaj Housing Finance believes in speedy disbursal for the ease of its customers and borrowers. Once approved, eligible applicants can find the money disbursed into their account in a time as little as 48 hours* from the time of approval.
Building a shortlist of potential lenders helps you to compare offers and select the one that suits your budget. Regardless of rising inflation rates, owning a house in India remains a popular ambition. People who make informed decisions while applying for a home loan will get the best value for their resources. If you’re already done shortlisting your preferred lender, don’t waste time in making your application.