Buying a home has become a lot easier than it was a decade ago. Areas that were unaffordable for a mid-segment homebuyer now host a multitude of affordable housing options. The government has also announced several initiatives to make dream home a reality, especially for the middle class buyers.

A majority of the homebuyers seek home loans to fund their purchase which is why the government has also taken initiatives for reducing interest rates on home loans. The recent announcement of new income slabs for home loan interest subsidy has made dream homes 2.4 lacs cheaper.

So this is the perfect time to buy your dream home. However, as a smart buyer, you should be well versed with the complete home loan procedure to get a better understanding.

Step 1- Home Loan Application

The procedure begins when you send a formal home loan application to the bank. Bank will ask for your personal details in order to scrutinize your financial standing and loan eligibility. For this, you will have to submit a set of documents including identity proof, age proof, address proof, income proof, employment details, details of existing properties, etc. [Read more…]