The journey of creating a home from a house is indeed the most beautiful one. When you see your nameplate at the door, the sense of pride and joy you get is simply fulfilling. HDFC Bank realises how important is it for you to have a home. Make this dream come true with HDFC Bank Home Loans.
Read on to know how you can kick start your Home Loan application today.
Step by step – Home Loan Procedure
Step 1: Filling the form
Home Loan Procedure starts with filling out the loan application form. Applying for a Home Loan from HDFC Bank is easy. Following are the basic details which you will have to fill in the form:
Name
Address
Contact details – phone number and email ID
Education
Type of employment – salaried or self-employed
Income earned
Step 2: Documentation
Once you fill in your basic details, you will have to attach the following documents for verification:
Identity proof – PAN card/ Aadhar Card / Voter ID/ Driving license
Address of proof – can be a copy of any utility bill
Salary slips of the last 3 months
Proof of employment
Bank statements of the last 6 months
Form 16
Note: If you are a self-employed individual, you need to provide the ITR of the last 2 years and the other income documents.
Step 3: Processing and Verification
On submission of the form along with the required documents, the bank starts processing your Home Loan application. The bank will verify all the documents provided by you. A bank representative may even visit your workplace or home for the same.
The next step is checking your creditworthiness as a borrower. The bank conducts an extensive enquiry into your credit score. Hence it is important that you maintain a healthy credit history.
If all your documents are in order and you have a satisfactory credit score and report, the bank will proceed with your loan application.
Step 4: Sanction Letter
On successful approval of your Home Loan application, the bank will send you a sanction letter. This letter acts as proof that the bank has approved your loan. All essential details about the loan transaction are enclosed in this letter, such as:
The loan amount you are eligible for.
The interest rate offered.
Whether the interest rate is fixed or variable.
Tenure of repayment.
Terms and conditions of repayment.
Read more about fixed or floating interest rates for Home Loans here.
After carefully reviewing all the points mentioned in the sanction letter, you can sign the letter and send it back to the bank. Only after the bank receives the signed letter from you, the Home Loan procedure moves to the next step.
Step 5: Secure Payment Fee
On signing the sanction letter, you will have to pay a one-time secure payment fee. The bank may ask you to pay the fee upfront either before or after the loan sanction.
Step 6: Legal and Technical Check
Before the bank disburses the loan amount, it conducts legal and technical checks. The bank representatives will verify the property you have applied the loan for. They will check if the ownership rights of the property are transparent. The representatives will also check if the documents submitted, and the proofs provided have any conflicting information.
During the technical check, the bank representatives will evaluate the actual value of the property. The status of the property – under construction or resale – will also be taken into consideration.
If the property is under construction, they will check the construction stage and quality of the work. Whereas, if the property is a resale one, the bank will check the age and maintenance of the property. In case of the resale, the bank may also check if the property has already been mortgaged before.
Step 7: Loan Disbursal
Once the bank is satisfied with the checks conducted, your Home Loan application will be approved. You will receive a final agreement letter.
Post loan disbursal, you will receive a welcome kit and a detailed housing loan EMI schedule.
It is important that you check whether you meet the required Home Loan eligibility criteria before applying for the loan. You can seek professional guidance here to make a more informed decision.
If you already are a borrower and want to switch your lender, you can opt for the Home Loan Transfer procedure.
A loan application may be disposed by HDFC Bank within 10 working days of receipt of the same subject to submission of all documents and details as may be required by HDFC Bank in processing the Loan along with the requisite fees.
Apply for a Home Loan with the HDFC Bank by clicking here today!
*Terms and conditions apply. Home Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.