Getting a housing loan might seem overwhelming at first, with all the forms and documents you need. However, careful planning can help ensure the loan fits your budget and you get the right property for your needs.
Here’s an easy-to-understand guide to help you navigate housing loans.
### Documents Needed
Before you start your housing loan application, make sure to have these documents ready:
– A completed application form
– Clear copies of one or two government-recognized IDs
– Marriage certificate if you’re married
– For expatriates or foreigners, a copy of the Alien Certificate of Registration (ACR) showing VISA status as permanent residents or an Alien Employment Permit (AEP). A VISA ID is also acceptable.
– Latest Income Tax Return (ITR)
– Most recent employment certificate or the last three months’ payslips
– For self-employed applicants, business registration papers, the latest audited financial statements for the past two years, and the latest three months of bank statements
### Procedure
Here are the steps involved in securing a housing loan:
1. **Application**: Start by filling out the loan application form, listing your terms and conditions, and submitting the required documents. The time it takes to get results can differ depending on the lender.
2. **Processing**: During this stage, your eligibility is assessed. This includes a prequalification process where a representative will check your financial capability by looking at your income, liabilities, and assets. If you have a co-signer, their ability to repay the loan will also be evaluated.
3. **Preapproval**: You will need to provide documents such as bank statements and recent income tax returns to prove you can make consistent monthly payments.
4. **Loan Approval**: If you pass all the processing stages, the bank will notify you that your loan is approved. You will then need to sign a loan agreement and pay the Processing Fee for REM.
5. **Fund Disbursement**: Once the bank approves the loan, the funds will be disbursed to you.
### Tips
Here are some helpful tips for when you’re applying for a housing loan:
– Always be honest on your forms.
– Consider all associated costs.
– Regularly check your credit score.
Good luck with your application!