Today, when applying for a home loan, you can either go the traditional way and apply for it offline or choose the more convenient option and apply online. Read on to know the dos and don’ts of applying for a home loan online.
The advancements in digital technology have made financial transactions seamless. Today, all you need is a smartphone or a computer and a good internet connection to carry out various transactions. The same goes for applying for any type of loan, including a home loan.
The traditional offline route of applying for a home loan is quite time-consuming, as you may have to personally visit the lender’s office, talk to the representative, etc. Not to mention, in offline mode, you would have to deal with the hassles of documentation as you must carry the physical copies of the documents.
In comparison, as most financial organisations now offer online services, applying for a home loan online is much more convenient. Today, you can easily apply for a home loan with any lender of your choice from the comfort of your home or office through their website or mobile application. You can visit the lender’s website, fill the online form, and submit the same along with the necessary documents (soft copies). You can also make the payments for the application online.
While applying for a home loan online, you can visit the lender’s website and use the home loan eligibility calculator to get an idea of amount you can borrow. You can also use other online tools like the EMI calculator to determine the EMI payable for the amount you wish to borrow.
If you are a first-time home loan borrower, it is understandable that you feel nervous and confused; the whole process may even seem overwhelming. So, to help you ease through the process, we list down a few vital Dos and don’ts you must follow while applying for a home loan online.
- First and foremost, before you start looking for the best home loan lender, you must check your eligibility. Different lenders have different requirements, so make sure that you check the lender-specific conditions before starting the application process.
- Every financial organisation has specific document requirements; you are required to submit documents such as Identity proof, Income proof etc. So, make sure that you visit the lender’s website beforehand to understand the documents required before approaching them.
- Keep digital copy of all the relevant documents beforehand. This will help you avoid delays in the application and approval process.
- Research about the different types of home loans available. As a borrower, you must be clear about the kind of loan you want to borrow. Some of the most popular types of home loans available in India include home construction loans, home improvement loans, home extension loans, plot loans, etc. Knowing the exact requirement will help you apply for the loan type, and you can make the most out of it.
- Be aware of the home loan interest rates offered by different lenders. This will help you narrow down your choice of the right lender. Apart from the interest rate, also check associated charges.
- Read the terms and conditions carefully before you sign the loan papers.
- Never leave any section blank or provide inaccurate details in the application form.
- Never take any home-loan related decision in a rush.
- Avoid completing the application process in stages. This increases the chances of committing mistakes.
- Don’t ignore keeping a check on the credit score a few months before applying for the loan. A low score can have a significant impact on the application, and your loan could be rejected.
- Don’t apply for a higher amount than you need. This will help you keep up with the repayment.
Now that you know the various dos and don’ts of applying for a home loan, do your diligence and have a pleasant borrowing experience.