how to raise a loan to buy a car and house
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Step 1: Before you decide to buy house with home loan, it is important to fix the budget and arrange atleast 20% funding from own sources. Reason being banks will only lend you 80% of property cost as Home Loan. You may check my post 8 Steps Financial Planning before you buy dream Home
Step 2: Check your CIBIL Score Online to avoid any future surprises. CIBIL Score of 750 or more is must to avail home loan in India.
Step 3: I strongly recommend to apply for pre approved home loan. Reason being it is critical to know loan eligibility before finalizing the property. Loan eligibility depends on multiple factors like salary, other liabilities, repayment capacity etc. In few cases, the buyer has to call off the deal as loan approved was much lower compared to property cost. Pre-Approved loan is valid for 3 months and can be extended to max 6 months. After receiving sanction letter, request the bank to provide list of property documents required for Home Loan Disbursement.
Step 4: After loan approval, you can search and finalize the property.
Step 5 (a): After finalizing property, You can sign the Sale Agreement (by paying 1% stamp duty on consideration value) & pay token money. Token money is normally between 2 Lac to 5 lac depending on cost of property.
Step 5 (b): At the time of signing sale agreement and handing over token money kindly check all property documents in original. Get xerox of all original documents from seller & match with the list of documents required by bank for loan disbursement.
Step 6: Submit all the property documents to your Bank for Loan disbursement
Step 7: Bank will get the documents verified and loan officer will visit the site for physical verification & valuation.
Step 8: Once the loan is approved for disbursement against property, you will be called to sign the Home Loan Agreement. Carry few blank cheque leaves with you and check with bank if any other documents required at the time of signing loan agreement.
Step 9: Now you are all set for registration & buy house with Home Loan. After consulting your lawyer and seller. Inform the bank in writing /through email the date of registration. Kindly keep the gap of 7-10 days between registration & date of signing home loan agreement. Inform the bank on Home Loan cheque denominations e.g. if your loan is 50 lacs and from this amount if you need to close 35 Lacs outstanding home loan of seller. In this case, inform your bank to give 2 cheques of 35 lacs and 15 Lacs.
Step 2: Check your CIBIL Score Online to avoid any future surprises. CIBIL Score of 750 or more is must to avail home loan in India.
Step 3: I strongly recommend to apply for pre approved home loan. Reason being it is critical to know loan eligibility before finalizing the property. Loan eligibility depends on multiple factors like salary, other liabilities, repayment capacity etc. In few cases, the buyer has to call off the deal as loan approved was much lower compared to property cost. Pre-Approved loan is valid for 3 months and can be extended to max 6 months. After receiving sanction letter, request the bank to provide list of property documents required for Home Loan Disbursement.
Step 4: After loan approval, you can search and finalize the property.
Step 5 (a): After finalizing property, You can sign the Sale Agreement (by paying 1% stamp duty on consideration value) & pay token money. Token money is normally between 2 Lac to 5 lac depending on cost of property.
Step 5 (b): At the time of signing sale agreement and handing over token money kindly check all property documents in original. Get xerox of all original documents from seller & match with the list of documents required by bank for loan disbursement.
Step 6: Submit all the property documents to your Bank for Loan disbursement
Step 7: Bank will get the documents verified and loan officer will visit the site for physical verification & valuation.
Step 8: Once the loan is approved for disbursement against property, you will be called to sign the Home Loan Agreement. Carry few blank cheque leaves with you and check with bank if any other documents required at the time of signing loan agreement.
Step 9: Now you are all set for registration & buy house with Home Loan. After consulting your lawyer and seller. Inform the bank in writing /through email the date of registration. Kindly keep the gap of 7-10 days between registration & date of signing home loan agreement. Inform the bank on Home Loan cheque denominations e.g. if your loan is 50 lacs and from this amount if you need to close 35 Lacs outstanding home loan of seller. In this case, inform your bank to give 2 cheques of 35 lacs and 15 Lacs.
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