Buyer's Guide

• Are you an employee in a reputed firm or Government organization or professional having regular flow of income?
• Have a clean financial record? And good savings habits?
• Is your income sufficient enough to repay the Home loan in equated monthly installments (EMI) s?

If your answer is YES to all the three questions, getting home loan may not be a problem for you. The fact that you have chosen a reputed construction company in Hyderabad, makes your task much easier.

Home Loan can be termed as a marriage between a bank and individual at least for over a decade. So naturally, getting home loan involves many steps. They are…

1. Short listing of Banks
2. Submission of Application
3. Personal Discussion with banker
4. Field Investigation
5. Credit appraisal and loan sanction
6. Issuing of Offer Letter
7. Submission of property documents – legal verification
8. Technical evaluation
9. Valuation
10. Registration
11. Signing of agreements and submitting post-dated cheques
12. Disbursement

Submission of the application is the second step. Typically, basic information about your Profession, Saving habits, assets, liabilities, details of the employer, dependent family members, property, estimated cost, and your means of financing the same should be declared. You have to submit many documents along with the application as a proof for your claim.
The documents required are as follows:


Proof of income: This will be the primary proof. All the banks insist on last three years Income Tax Return forms- Form 16, Bank account statement for the last six months, Salary slips or certificates, age proof, address proof and identification proof.


Age and address proof: You need to submit any one from the list stated here. Copy of your SSC certificate/Driving license/Passport/ration card/PAN card/Electoral Identity Card, PAN Card, Electoral Identity card, Driving license card are suffice for the address proof.


Identity proof: PAN Card, Driving License or Passport will be required as proof of identity


Employers Details: If you are not working in Government or reputed private company, you need to provide details of your employment. You need to provide brief information about the nature of your employer, business activity, financial status, turnover, profit, major customers, number of employees etc.

The forms, statements submitted by you are the basis for the banker to decide whether you are eligible for home loan or not. Each document would be carefully scrutinized for eligibility.

If you are a Businessmen or a Professional, banker looks out your bank account statement to know the level of business activity. It speaks volumes about your financial health. If you have insufficient or low funds in your bank account most of the times, you may be in trouble. It is always advisable to keep sufficient amount in your bank account. It always helps in a having a good track record.

Be aware that the cheque bounces will prove to be major negative factor in your efforts for securing the loan. One or two instances may be pardoned. Each and every bank will have specific norms as to how many such bounces are acceptable in a period of one year.

Account statement will also reflect your payments to the banker, financial institution. In this case, you will need to provide full details to the Present lender. Never hesitate to submit full details of your existing investments. A Clean Bank Statement with regular savings and investment record will certainly be appreciated by the banker.


Processing fee :

Processing an application is a complicated process and job, which requires expert services. That is the reason, why banks collect processing fee upfront. You need to pay fee while submitting the application itself. Processing fee Varies from bank to bank. It is normally around 0.25% to 0.50% of the total loan amount. For example, if you take 10 lakhs loan, you will have to pay around Rs 2,500 to Rs 5,000 as processing fee. Some banks may charge fixed amount which is ranging from Rs. 5,000 to 10,000. On special occasions, banks usually waive the processing fee.

Some banks may not charge processing fee upfront. But look out; you may need to pay legal charges or administrative fees.

As far as possible, choose best residential properties from reputed builders in Hyderabad. Their properties will normally be approved by the bankers. Bankers offer loans on easier terms and offer discount in processing fee. You may get loans with cheaper rates also.

This process can be compared with written test. If your answer sheet that is application form is found to be satisfactory in all aspects, you may be called for oral interview in the form of personal discussion. Typically banks take anything from 10 days to 30 days to evaluate your application. The aim of the personal discussion is to gather more details about you, which may not be mentioned in the application. So you are required to keep all the relevant documents along with you, while going for personal discussion.

Banks never go blindly. The bank verifies all the information submitted by you including your residential address, place of employment, employer credentials, residential and work telephone numbers. Normally, this verification process will be outsourced to the specialized agencies.

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This stage will set for deal or no deal. If the banker is satisfied with your application and credentials, rest assured, you will be getting a home loan to buy residential property in Hyderabad. The banker then issues a Home Loan Sanction Letter. Sanction letter may either be an unconditional one, or may have certain terms and conditions, which you have to fulfill before the loan amount is disbursed.