How Much Time Do Banks Take To Sanction Your Home Loan?
Gone are the days when financial institutions had the scope to show they were doing a borrower some sort of favour by lending them money ─ the competition is too intense; the market condition quite unfavourable for them to have any such liberty. This is why they do not take as much time to process home loan applications that they did in the past. Five years back, it would have taken you at least a month to get your home loan application approved by a bank; the same is not true anymore.
After receiving your application and verifying the documents, banks send their representatives to physically examine the property that the borrower is going to purchase, the place where they work and the place where they live. Upon being satisfied, banks immediately sanction the loan. The entire process may last less than a week or 10 days maximum.
“I had already done my research about the documents I needed to apply for a home loan. Since all the papers were in place, my home loan application was approved in a matter of a week after it was submitted. The bank in fact sent a representative to help me with sorting out the paper and fill up the form,” says Nazia Akhtar, who recently borrowed Rd 45 lakh from a leading public sector bank to buy her dream home in national Capital Delhi.
More importantly, break-neck competition and weak market conditions have certainly taught banks to serve customers better.
“About four years ago, I had applied for a personal loan. It was quite a hassle. However, when I applied for a home loan recently, I was pleasantly surprised to see the change in the bank’s approach—mind you, it is the same bank. The kind of attitude change banks have undergone in the past couple of years is unbelievable,” says Rohit Makkar, who took the loan from a private bank.
Tips to ensure things run faster
Read on: Bank websites clearly mention the documents that they would need the borrower to submit. Make a list and get all documents ready before you approach the bank and ask for an application form.
Decide what you want: Do a thorough research about home loan, its various types, etc., beforehand, and pick a product that is most suitable for you. If decisions are made beforehand, it would save you a good deal of time and hasten the process.
Be present: Make sure you are present when representatives from the bank visit the property, your current residence and your office. Your absence might cause delay that you could easily avoid.
Stay put: It would be in your best interest to maintain an as-is where-is sort of approach while the bank processes your home loan application. Sudden job change, for instance, might not be a good idea. In such a scenario, you will have to provide the bank with a new set of documents. Similarly, this is not the time to switch your rented accommodation.
Take the call: Banks would make phone calls and send emails to share important information about the process. After submitting your home loan application, it would be the best to entertain every call every email you receive from the bank. Make arrangements accordingly.