For many people, owning a home in their ideal city remains a fantasy. The satisfaction of owning your own dream home is priceless. With the help of a home loan, these goals can be realized. Applying for an HDFC home loan has never been easier. HDFC provides home loans with low-interest rates to its customers. There are numerous advantages available today if you opt to apply for an HDFC home loan. Aside from the tax advantages that come with a home loan. HDFC home loan provides the builder’s reliability and track record. As well as the legal paperwork pertaining to the property, when you apply. HDFC home loans are offered at an affordable rate of interest and have an easy-to-apply process.
HDFC Home Loan Application Process
The HDFC home loan application process is an eight-step process that is as follows:
Fill up the home loan application form
Each borrower is required to fill and submit an HDFC home loan application form. Name, residence, income details and verification, employment details, education details, and phone number will all be included. If the applicant is a salaried employee, he must also provide proof of all of the above, as well as salary slips for the last three months, employment proof, bank statements for the last six months, and the most recent Form 16. Self-employed applicants must submit a complete set of ITR returns for the last two years, as well as other income documentation.
Pay the Processing Fee
After submitting the documents, the applicant must pay HDFC’s non-refundable processing fee. The bank’s preliminary efforts in validating borrower information and analyzing the property’s valuation and ownership title are covered by this fee. The applicant will pay the remaining processing fee at the point of loan amount distribution. It could be a fixed amount or a percentage of the loan’s total amount.
Within 5 working days, HDFC decides whether to approve or reject the home loan application based on their credit policy. HDFC Bank may contact the applicant for a phone interview. In the case of self-employed borrowers, an HDFC bank representative may pay a personal visit to the customer’s place of business. He would discuss the terms of the loan and gain a better understanding of their business.
Once HDFC bank has finished speaking with the applicant in person, it will begin assessing his eligibility. This may entail an HDFC officer visiting his current address and/or contacting his employment. The applicant’s CIBIL score will be checked by HDFC. The applicant’s documents will also be verified by the bank.
This is the process by which the HDFC bank determines whether or not to approve the loan application. The applicant must ensure that all of his documents are in order, or his application may be denied. If there is an error in the applicant’s documents, then HDFC bank might reject the home loan application. The applicant would have to apply again in that case.
Loan Sanction Letter
If the loan gets approval, HDFC bank will give the applicant a loan sanction letter. The letter would consist of the acceptable loan amount, HDFC home loan interest rate and type (fixed or variable) applicable, loan tenure, and all other terms and conditions of the home loan.
HDFC will verify the property now that the loan has been given approval. It will conduct a legal examination of the property. The exam is to ensure that the title is clear and that there are no indicators of conflict or dispute. It will also inspect the stage, progress, and quality of the building if the property is under construction. If the property is a resale, the bank will examine the building’s age, quality, and upkeep levels. It will also see if the house has previously been mortgaged. HDFC bank requires the applicant to produce all of the property’s original documentation, including original copies of the title deed. Until the applicant fully repays the loan, these papers will remain mortgage with the HDFC bank.
Once the property verification is complete, the borrower has to provide all the original documents to the HDFC bank. If all the documents are in order, the loan will get disbursed and the cheque will be handed over to the borrower. The cheque may be made in favor of the builder if you are purchasing the property from a builder. Post-disbursement, HDFC will send the customer the welcome kit, along with the repayment schedule.
The above is the step-by-step process to apply for a home loan in HDFC bank.
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