The Home Loan Process - In this third and concluding part, of the home buying series, Investment Yogi, clarifies all that you need to know about home loans from application till final disbursement.
1) Loan Application and Evaluation
The loan application is a very important document and its format varies according to the lender. It collects information about your personal and professional details, financial assets, liabilities and existing property details with the estimated cost.
2) Credit Appraisal and Sanction Letter
On the basis of your age, qualifications, income, employer and nature of business (if self employed), lenders ascertain your maximum loan eligibility. Remember that your home loan eligibility is nothing but your repayment capacity. It is hence vital to have a realistic view. Even if you are eligible for a large sum, borrow only as much as you are comfortable repaying monthly. Keep in mind, banks finance only up to 85% of the total cost of the home, so you would need to cater to the balance amount from your resources.
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