With rapid advancements in digital technology and better bandwidth quality, it is possible to make a home loan application online. Today, there are syndication websites that help you compare home loans at the click of a button. There are artificial intelligence (AI) engines that customise a property to your tastes and affordability. Let us tell you how you can apply for home loan online and if there are any merits of an online home loan application.
Process of online home loan application
The process to apply for home loan online is simple and user-friendly. Just visit the website of the home loan provider and fill up relevant details in the application.
Not just the application, but with the ease of online home loan application even your initial set of documents can be submitted online. This includes documents like bank statements, 3 years tax returns, details of the property for which loan was sought etc. Online applications for home loan can be simple, time-saving, and convenient; in a world where people are starved for time.
While home loans are often announced as being fully online, there is normally a strong offline component. Giving a home loan is a major long-term commitment for any bank or housing finance company. Hence, some part of offline work is inevitable. Though routine submissions and in-principle approvals can be secured online.
Can the entire home loan process be done online?
When you apply for home loan, the process starts much earlier in terms of identifying the right property, research on lenders etc. Here is how online and offline stacks blend into the home loan process.
- Buying a home starts with property short-listing based on your budget, features of the property, location, proximity etc. This is something you can do online either on the website of the lender or of syndicators. This can also give you a much wider array to source properties before you zero in and take next steps.
- Comparison of home loan lenders is also much easier online. To begin with, some properties normally have in-built home loan arrangements. In case, you are not happy with the deal, look online for alternatives.
- Before you apply for home loan, the online platform is a good way to check eligibility by inputting all relevant data. There is an affordability check you can do with online EMI calculators. Check that you can afford to pay the EMIs monthly. These EMIs are generally not more than 40% to 50% of your take-home pay.
- Is it possible to do the complete documentation process online? Perhaps, not entirely, but today when you apply for home loan, substantial documentation is done online. The bank/lender would typically give you a facility to upload basic documents like PAN Card, address proof, Aadhar Card, income slips, and tax returns online. This list of documents will change from bank to bank. These can also be done offline, but it would be more cumbersome. After the online submission, the bank may still insist on a personal meeting before giving sanction letter. However, in most cases even sanctions are online with only disbursal being done after a personal meeting with borrowers.
- Finally, what happens when you submit the loan application online? It is the first step to getting a sanction letter. The actual disbursal is only done after inspecting the property, checking the title deed, verifying link documents with the municipality and the registration documents. Once the online sanction is given, much of the activity actually happens offline before the actual loan is disbursed.
Let us finally look at a quick checklist when making an online home loan application.
Quick checklist for online home loan applications
Before an online home loan application, here are some basic checks to run.
- Even before you apply for home loan online, check eligibility. Be clear about how much margin you can bring in and how much loan you need.
- When you are uploading documents online, keep a checklist ready with necessary self-attestations.
- Be aware of your CIBIL score (credit score) and ensure it has been consistently above 750. That increases your chances of getting the home loan approved on time or even at a lesser rate of interest.
One last word. Ensure not to make any false declarations about income, assets, liabilities, medical conditions etc. This can work against you in home loan cases.