While it may thus seem that all the banks are eager to lend, the fact is that getting a loan sanctioned is still considered as a tedious task. Thus in order to avoid the problems encountered while applying for a home loan application the borrower must read on the pointers which are given below.
- Fill up the loan application form yourself: Most of the borrowers prefer just signing on the dotted lines of the application form by allowing someone else to fill up their important personal details. But he shouldn’t forget that it’s a type of a legal document. And if wrong any information is captured, even if it is mistaken, it would lead to disaster.
- Don’t let any phone calls go unanswered: When the borrower applies for a home loan, he should not be afraid to entertain a call from an unknown number. The loan process executive, the verification agent, the credit manager, the external valuation agents would however mostly call him from a landline.
- Ask for a sanction letter: All the lenders issue a sanction letter, which thus consists of the primary conditions like Loan Amount, Loan Tenure, EMI, the validity of the rate, Rate of Interest, that are applicable, and the validity of the sanction letter.
- Do not drag & delay the loan disbursement until the last date: Many people try to take the money from the bank on the last of the possible dates with the thinking that they are ‘saving interest’. It is thus a misconception and it could also become a costly affair.
- Do not sign all around the pages in loan legal kit:
- Do not sign blank loan kit: The loan kit which the borrower has should be at least 90% filled. Names of all the applicants, Loan amount, rate, Tenure, EMI, Property address, Type of loan, Pre-closure clauses, Penal charges…should all thus be mentioned and it must be written in the agreement which the borrower signs. The borrower should also strike off the places like additional borrower details, etc. so that there is no possibility of any kind of alteration.
- Preferably, use a special pen: The borrower should always use a pen which is thus not commonly available in the market, like a fountain pen.
- Ensure you have a copy of all papers that you sign: The borrower should ensure that he has a copy of all the papers which he signs.
- Post disbursal kit: Ideally, the kit should arrive at the borrower’s designated address latest by 30 days from the date of disbursal, unless it is otherwise specified. If it, however, does not reach him in this time, he must raise an alarm.
- Apply for LOD, Amortisation, Provisional Tax certificate: Post creating the mortgage, the private banks never issue the List of Documents (LOD) which are mortgaged with them in a charted format. But the borrower should have a record of all the documents which he had shared because the title deed of his property has thus been handed over to them.
Also, the amortization schedule which shows the principal interest breakup month on the month till the closure of loan is also required for the borrower to plan the repayments, if any.
Besides, the provisional tax certificate is also one of the most important reasons for which borrower has borrowed a loan. If he cannot submit this document in time with the employer, the borrower would have excess tax deduction every month! So, the borrower must be attentive to get these documents.