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Essential Tips Before Applying for Home Loan

Home loans are essential these days if you plan to buy any of the dream properties being built by the builders in India. The real estate prices have been soaring up due to the increasing demand of flats in Mumbai, Delhi and many prime locations and hence it has become difficult for people to own flats without getting a home loan sanctioned. Banks, on the other hand, have become more careful in sanctioning home loans and make sure that proper scrutiny is done before the loans are approved. This takes a lot of time and involves a lot of paper work, most of which makes the entire process cumbersome and lengthy. However, there are times when the loan sanctioning process takes time due to the customer’s fault and due to the multiple number of times he has to go to get various documents, permissions and other necessary items. In order to prevent these things and expedite the loan sanctioning process, some things should be kept in mind as mentioned below.

  • Be sure to check your CIBIL score well in advance before applying for a home loan. If the score is low, you should get it corrected by taking punitive measures and checking the errors, if any, in the reports so that the score is corrected. Without the CIBIL score being above a certain threshold, the home loan would not get sanctioned as it will reflect poorly on your credit history. So, in order to save your time as well as the bank’s, you should get your CIBIL score corrected and checked.


  • Many real estate developers might assure you of an easy sanction of the home loan. But it generally isn’t that simple as you have to provide a whole lot of proofs, documents, originals, photocopies and other material for the verification and authentication by the bank before the loan can be sanctioned. So, when you go to the lender to apply for home loan, be sure to take all the necessary documents and proofs, details of which can easily be got from the website as well as the customer care numbers. This will save you a lot of trouble and time and get your work done in one go.


  • Builders in India often tell you that they can get you the best deals on home loans, which is not always true. You should research various options and lenders available in the market for home loans, the schemes they have, the interest rate policies and the repayment schemes and choose the one which is best for you as per your requirements and the repayment frequency. It is also important that you choose the interest rates to be flexible as any dip in rates will lower your interest, which is generally the case in the real estate market as more push is being provided by the government and a lot of black money has gone out from the system.

So, these are some things which you should keep in your mind in order to get the loan to buy your favorite property in the latest property designed by the real estate developers.

Additional Reads:

Things to take care while buying Home

Disadvantages and Advantages of prepaying your Home Loan

Top reasons why living in Bangalore is best decision

Chandigarh to start GIS mapping for properties

Bhushan Kumar’s lovely Home in Delhi

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