Your Step-by-Step Guide to Home Loan Application

Homes are the dream of millions of individuals in India. Looking for emotional and financial stability, people work throughout their life to buy a house. People often prefer home loans based on their situations and opt to pay the remaining amount for a certain period. With the availability of a home loan EMI calculator and information on home loan interest rates, the calculations and estimations have become very easy. We are making the next step easy by walking you through the application procedure. It will let you prepare the required documents, further easing the application process. 

Step 1: Research Well

Go through the various home loan interest rate offered by different banks and financial institutions. Utilize the facility of an online home loan EMI calculator to estimate the period of the loan and the best possible interest rate suited specifically for you. Choose the lender and further satisfy any of the queries you come across. 

Step 2: Fill Out the form

Contact the lender and request the mode of form to be filled. Based on the mode, ask questions regarding the hard or soft document copy requirement. Generally required documents are identity, address, and employment proof, along with the last three transactions of income source. The latter will be switched with Income Tax Returns of two years for self-employed people. 

Step 3: Pay the Fees

 A non-refundable processing fee is required at the time of form filling. It does not guarantee loan approval and varies among different lenders. The processing fee can be fixed or flexible, with variations depending on the loan amount. The banks may charge a part of the processing fee at this time and then go on to add it to the monthly payment. 

Step 4: Check Eligibility

Now begins the discussion with bank officials, which can be organized at the bank or at home. It includes checking eligibility according to income, credit score and report, liabilities, and other relevant factors. The self-employed people will be judged according to the cash flow and long-term business plan. 

Step 4: Verify the Documents

It is a significant process that thoroughly checks the possibility of forgery or fraud by the applicant. The verification involves contact with all the employers, address verification, and other steps depending on the requirement. The step also opens the window to submit pending paperwork, failure of which can result in the rejection of the loan. 

Step 5: Loan Approval and New Property Verification

If the loan is approved, the bank’s next step will be to verify the property for disputes or conflicts. In the case of unfinalized property, applicants can request a specific time. The under-construction property will be checked for quality and construction progress. Moreover, banks check the resale property for durability, maintenance, and quality. 

Step 6: Complete the Paperwork

The affirmative results will result in completing all the related paperwork and signing an agreement between the bank and the applicant. This stage requires all the original documents of the property that the applicant will receive back after completing the loan payment. The applicant will receive each detail, such as home loan interest rate, amount, repayment mode, loan tenure, and terms and conditions in the loan agreement. Carefully review all the details and provide the signed copy to the lender. 

Step 7: Receive the Amount

The loan disbursement will depend on the purpose and type of loan. In case of purchase, a bank will provide a cheque in the builder’s name. If the applicant has a bank account, the repayments will be directly debited, while in the absence of a bank account with the lender, the registered bank account will be used for debit. 


The listed steps were generalized for a basic idea of the procedure. Different banks, financial institutions, and lenders will follow their specific processes, which must be known through direct contact. Ensure to research well about home loan interest rate. Further, utilize the home loan EMI calculator to estimate the EMI for better personal financial management and planning.