A recent survey revealed millennials favour owning a home over renting a property. As the home loan rates have plummeted to their all-time low in 15 years, the demand for purchasing a house has increased among this demography. Accordingly, more financial institutions are extending a home loan online to tap into this surging demand of owning a property among the tech-savvy consumer demographic. In fact, several surveys indicate that the demand for online borrowing and related services are on the rise.
- In another Google survey of 2512 respondents, around 22% of adults use a digital account for various financial services.
- It is expected that by 2026, around 397 million Indians will have a digital account.
While more lenders are now simplifying the home loan process, prospective borrowers must find out how to make the entire process even more hassle-free.
A guide to obtaining a housing loan online
The best way to ensure a hassle-free borrowing experience is to find out how to apply for a housing credit online. For a home buyer who wants to apply for home loan online will have to follow these steps –
Step 1 – Visit the lender’s official website and navigate to the home loan page.
Step 2 – Click on the ‘Apply Now’ option
Step 3 – Fill up the loan application form with essential personal, financial, and loan details.
Once these steps are completed, a representative will contact the applicant to initiate the verification process. Subsequently, such an applicant will have to pay the home loan processing fee online and proceed to complete documentation.
Though individuals may complete the application process, a few things may delay the approval process. To avoid such hassles, one must consider a few things in advance to ensure a quick loan approval.
Tips to accelerate the approval process
These tips will ensure smooth approval for a home loan applicant –
Tip 1 – Find out eligibility requirements before applying
Rejection of loan application due to the inability to meet qualifying criteria tends to influence eligibility negatively. It erodes the current CIBIL score and stays on applicants’ credit report for a long time. Nevertheless, having an idea about home loan eligibility can save one from such hassles. Besides checking the qualifying criteria, individuals may calculate home loan eligibility in just a few clicks online using an eligibility calculator to estimate the loan amount they are likely to get sanctioned.
Tip 2 – Keep the documents required for a home loan handy
Submitting the correct set of documents required for home loan approval is a must to streamline the process. Usually, top HFCs require applicants to submit a few essential documents like –
- Income proof
- Address proof
- Employment or business proof
Notably, the list of required documents for salaried and self-employed individuals tends to vary. To ensure zero confusion, individuals must find out about the same beforehand from the online portal.
Tip 3 – Select an ideal loan tenor
A suitable repayment schedule helps to pay off a home loan online without straining finances. Most HFCs extend a flexible repayment tenor that extends to a maximum of 360 months.
The common notion is that selecting a longer tenor offers ample time for repayment of housing loan and, in turn, lowers the scope of default. Also, the EMI payouts are smaller in case of a longer repayment schedule.
However, the overall interest outflow would be more as interest calculation is directly related to the tenor. Regardless, individuals can make an informed selection for loan tenor by using home loan EMI calculator.
Tip 4 – Make a higher down payment
Leading HFCs provide up to 80% of the property’s purchase price as the loan amount. While the general tendency is to purchase a house with minimum down payment, individuals should try to make a down payment that is higher than 20%. Doing so would bring down the loan requirement and help receive prompt approval.
Select financial institutions also provide pre-approved offers, which makes the borrowing experience less cumbersome. Generally, such offers are available on financial products like loans against property and home loans. Check your pre-approved offer by keying in your name and contact number.