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8 Steps Guide for Home Loan Process

by Bret

A home loan is a process in which money is borrowed from banks or housing finance companies. This sort of loan is taken to buy, build, and renovate the house. A housing loan provides you the capital and then you have to return it some years. One major pitfall of home loans is the interest over it.

Getting a home loan isn’t an easy process. It’s a strenuous process that includes credit and document verification. Usually, due to incomplete knowledge and guidance, people fail to get the loans.

Here is the 8-step complete guide through which you can easily get home loan:  

 1. Find a Mortgage Broker

The foremost step is to hire a home loan specialist. It’s important as the expert will provide you with the necessary information about the whole process. He will also assist you in the documentation and application procedure

For this purpose, connect with the company to hire a professional mortgage broker. Keep in mind to contact the one who is a specialist in assisting with home buying, building, and renovation loans.   

 2. Gather All Your Documents

The second step is of preparation of all documents. For this purpose, a National Identity card, bank statement, and voter ID are essential. Moreover, an employment or business certificate is also a must. 

Whereas the additional documents are according to the type of loan. If you are getting a loan to build a home then a no objection certificate from the society is necessary. Similarly, in the case of buying a home, a sale agreement is required. For home renovation loans, property papers are needed.

 3. File Application with Home Loan Specialist 

After collecting all the required documents, go to a bank or housing finance company. In this step, you need the assistance from the mortgage broker. He will assist you in short-listing the banks and companies that provide you loan. 

After shortlisting a bank or company, file your application for the loan and attach all the required documents.

 4. Assessment by Loan Lender

In this step, a bank or loan-providing company will assess your all basic documents. This includes the assessment of loan type, capital of loan filer, and bank statement. In this step, the bank or company makes sure that the lender has enough resources or property to pay back the loan.  

 5. Pre-Approval of Home Loan 

After assessment of documents and ensuring the capacity of the lender, home loan pre approval is given. This indicates that the bank is interested in providing the loan and requires more documents for the verification process.  

 6. Verification of documents by Moneylender

Following to pre-approval of the home loan, you are required to provide the additional documents asked by the bank or housing finance company. After that, they carry out a thorough verification process. It includes the confirmation of personal identification information, income verification, and taxpayer number.

 7. Final Meeting 

After verification, a final meeting happens between the lender and the bank. A mortgage broker hired by the lender is also present. In the meeting, things are finalized. Interest rates and other loan details are discussed.

 8. Approval of Loan 

In the last step, the loan is approved. An approval letter is given to the lender. The borrower reviews the letter and finally, the loan is paid on agreed terms and conditions.

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