The purchase of property is one of the most anticipated events of a household, but sufficient capital is required to turn this dream into reality. To meet the requirements of capital, most Indians rely on home loans. Since these loans are becoming easier to avail of, the dream of being a homeowner is now closer than ever. All you need to do is ensure that you meet the eligibility criteria set by your financial institution to get a home loan in no time. But this brings up a question, exactly, how long is the average home loan processing time? Well, here are a few things that you should keep in mind regarding the home loan processing time.
Overview of the standard home loan process
You might have heard that taking out a home loan is quite a time-consuming and harrowing task, but that’s not always the case. To ensure that it goes smoothly, the borrower needs to duly fulfill the requirements specified by a financial institution.
These include documents, meeting the eligibility, and a guarantor in some cases. That’s why it’s recommended to have a complete understanding of the process of applying for a home loan. This will help you prepare better and get resolutions faster.
Here’s a quick overview of the home loan process.
- Begin by submitting the application form for the home loan.
- Next, prepare and submit the documents needed for the loan.
- Now, pay the home loan processing fee.
- Go through the documents online thoroughly to understand the terms and conditions of your loan. Sign on the dotted line after you read it.
- Get all your documents verified.
- The financial institution will now send you a loan approval letter.
- After receiving the letter, complete the property verification and the legal check for your loan.
- Now, all that you need to do is sign the loan agreement (after you ensure everything is in order).
- The loan is then disbursed by the financial institution.
This should have given you an idea about the home loan process, but what about the home loan processing time? Let’s find out.
Home loan processing time
The home loan processing time of a loan depends mostly upon the lender in case of no external problems. Different lenders will have different home loan processing times. This is mostly due to the internal mechanics of the lenders, such as document verification.
This means that if you approach two different lenders, you will most likely have different home loan processing times. Another point of difference is the borrower itself. For example, salaried professionals will have shorter home loan processing times as compared to self-employed individuals.
However, generally speaking, if everything is in order, then you can expect the disbursal of your loan within 1-2 weeks post-signing the documents. Here are some points to help you understand the nuances of a home loan process.
- You might face some delays when applying for a home loan. They can happen for a variety of reasons, including misplaced documents, low credit scores, issues with the property, etc.
- The lender cannot and will not proceed with the loan without diligence and verification. Everything and anything that can be verified will be verified. Just cooperate with the bank to get a loan faster.
- Issues with the property tend to increase processing time by a significant margin. This happens due to faulty credentials of the builder in question or the lack of a title for the property.
- For self-employed individuals, ensuring valid income tax returns during document submission is critical. It will help fasten the home loan process.
- A good rule of thumb to speed up the processing time is to learn what documents are needed before applying for a loan. Different lenders may require different documents. It also depends on your status and the type of home you are trying to build. You can get the list of the required documents via the lender’s website. The customer care or the relationship officer will also list out the pre-requisites of a loan.
Conclusion
Thanks to online banking facilities, the home loan processing time has come down by a significant margin. To accelerate it even further, it is essential to cooperate fully with the lender and understand the requirements. If you are an employee of a financial institution, getting a home loan from there would be quicker. Since they already have a lot of your documents, it brings down the time significantly.
While your home loan may take some time to be disbursed, you can rest assured that HomeCapital will quickly approve your request for a down payment loan. Fill out the online application form to get an interest-free down payment loan of up to 50% of the down payment amount. You also get the option to repay the loan in a flexible tenure as per your suitability.