Jan 29, 2023
Real estate prices often appreciate over time, enhancing the buyer's wealth in the long run. Buying a dream house is one of the biggest investments and involves many finances. Because it is a substantial investment, most homebuyers look for borrowing options to fund their home purchase. Those looking for financial assistance can opt for a PNB Home Loan with which they can own a home while paying its price in easy EMIs.
PNB Housing Loan is a simplified solution to owning a home one desires. Knowing how to apply for a loan the right way is crucial, as it helps accelerate the loan approval and disbursal process. Here is a step-by-step guide to applying for PNB Home Loan that ensures a faster and smoother loan process.
- Fill Up the Application Form
PNB offers digital application facilities, so the application process has become very easy and quick for applicants. The first step to avail a Home Loan is to visit the lender's website and fill out an online application form. The application form requires the applicant's personal information, including -
- Name,
- Contact details,
- And information regarding their income, education, and employment.
Furthermore, the applicants must submit their identity, address, work, education, and income proofs for application.
- Pay the Processing Charges
When an individual applies for a Housing Loan, all housing finance companies charge a processing fee to conduct the preliminary work, like verifying the property and documents. The charges vary between lenders and are non-refundable whether the loan gets rejected or approved.
Once the applicant pays the processing fee, the lending institution checks their loan eligibility. Aspiring borrowers can use a Housing Loan eligibility calculator to calculate their eligible loan amount. Before applying to ask for an adequate loan amount, it is wise to know the loan limit. It improves the chances of approval and gets disbursed faster.
Verifying the documents is the next step in the loan application procedure. In case of pending paperwork, the lender will specify a timeline within which the applicant must submit the required documents. And the loan company may reject the application if the documents show forgery, discrepancy, or fraud.
Depending upon the eligibility check, credit policy, and document verification, the lending institution decides the loan amount, interest rate, and repayment term. It sends a loan offer to the applicant via email.
Once the loan gets approved and the applicant accepts the loan offer, the finance company verifies the property in question. They conduct a legal check to ensure the house is clear of any conflict or dispute. If it is an under-construction property, the lenders check the quality and progress of the construction. For a resale property, they check the building's age, maintenance, quality, location, and condition. If the applicant has yet to finalise a property, they may have time to choose a home they want to buy.
After clearing all the remaining paperwork, both parties sign a loan agreement, and the applicant submits the original property documents to the lender. The loan company keeps these documents as a mortgage until the borrower repays the loan amount.
PNB disburses the Housing Loan after signing the agreement and submitting all the necessary documents. Now, it's up to the borrower to repay the EMIs on time and get the property's complete ownership.
Most borrowers follow this standard Home Loan procedure at PNB Housing. However, the steps may vary depending on the borrower's unique profile and requirements. Therefore, before applying for a Housing Loan, understand the procedure and make a robust repayment plan to avoid any unpleasant surprises later.