Planning to apply for a Home Loan and wondering how your application will be processed? What exactly is the procedure for getting the loan amount in your bank account?

The Home Loan disbursement procedure is a straightforward procedure. First, the lender examines your documents. So submit all documents and the application form correctly as these are inspected by the lender. Correct paperwork is the first step in getting your Home Loan approved. Next, the lender verifies your credentials. A background check will be run by the lender to verify all the personal details provided by you, including an understanding of your financial record and an analysis of your CIBIL report. This is the second most important step before your loan can be sanctioned.

Some lenders may want to corroborate the information via an interview. If you are applying for a second Home Loan, you will be asked to explain your financials thoroughly in a personal interview. Next, the lender will ask you to sign a few documentsThese need to be submitted to the lender along with property documents.

Before you get the loan amount, you will be required to make a down payment, which is usually 20% of the cost of the house, depending on your financials. Finally, the lender begins legal substantiation since the documents of your new property need to be legally assessed before your loan can be sanctioned. These legally assessed documents will decide the value of the property for future reference. This is the last step that decides whether your Home Loan can be sanctioned. After this, your loan application is processed and if it all seems in order, your Home Loan will be approved.

Here is an infographic that rightly explains the disbursal process of a Home Loan from the lender till your bank account:


How does a lender disburse your home loan

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