Buying a house is not a small development! For most buyers, this particular acquisition wouldn’t have been possible without a home loan. However, it takes time to successfully secure this loan as financial institutions have various obligations and protocols to abide by.
Fortunately, some strategies can help you get the home loan approval faster than normal. While it may seem difficult at the beginning, following these simple steps will help you secure a home loan faster. Here is how you can easily secure quick home loans:
- Know What Your Lender Wants
The first step an individual should take is to identify what the bank or the lender wants from them. Loan providers have specific standards that they are bound to uphold while approving instant home loans. These tests involve the analysis of credit scores, income, and employment histories of the applicant concerned.
Before applying, know your credit score and ensure it is good, if not try and have it rectified for quick loan approvals. Loans with high credit ratings take a shorter time to be approved and relish other benefits like better insurance rates, higher principal amounts, and lower interest rates.
- Pick the Right Lender
It is important to understand that not all lenders work at the same interest rates. Seeking assistance from NBFCs and online service providers will allow you to get loans faster compared to conventional financial institutions.
However, loans offered by banks are considered more secure as the required standards are followed. Find a lender with the best reputation in terms of processing loans to fast-track the approval process. This can work to your benefit and save you a lot of time and energy in the long run.
- Prepare Your Documents
The first and foremost requirement to ensure fast approval of a home loan is to be well-documented. Financial institutions require several documents to process a home loan application, including:
- Identity proof: An Aadhaar card, PAN card, passport, or voter ID.
- Address proof: Electricity bill, rental receipt voter ID card, or any other photo ID proof.
- Income proof: Salary slip, bank statement, Income tax returns, and profit or loss account for the entrepreneurs.
- Property documents: A sale deed, the title deed, and property tax receipts.
- Employment details: Employment reference, date of joining, present job details, and designation.
These documents will improve the application process if they are easily accessible and well-arranged. Even a slight delay in the documentation process leads to a longer approval time for the loan application. So get your documents sorted!
- Check Your Loan Eligibility in Advance
It is wise to consider checking your eligibility before applying for a home loan. Almost every lender has online eligibility checkers that give a clear idea about the eligibility standards. Factors like income, age, employer, and other obligations should be verified before applying for a loan. Gaining a complete understanding of the eligibility protocols helps fast-track loan processing time.
- Ensure Stable Employment
Lack of employment history or having multiple short employment periods with little between them is likely to result in either denial or delay. For the home loan, individuals should be employed with the same employer for a minimum of two years.
- Choose a Shorter Loan Tenure
Selecting a short period to pay back the loan can also help you to gain approval easily. Lenders consider short-term tenures to be less risky because the borrower is likely to pay back the balance earlier. Even though it increases the monthly EMI, it also decreases the overall interest burden in the entire loan tenure making it a much better proposition for both the lender and the borrower.
Final Overview
Quick home loan approval is easy if you plan it properly. The right credit score, arrangement of documents, choice of the right lender, and online application tools will help you cut down the time to get a home loan. Furthermore, choosing pre-approval and involving a loan consultant also help reduce the complications so that people can buy their dream house without additional hurdles.
