What is the Average Processing Time Required on Home Loan?
If everything is in order, how much time can it take for a lender to process your Home Loan application? Read this post, to find out.
Most Indians rely on a housing loan while purchasing a property. As Home Loans have become more accessible, simpler, and faster, the dream of being a homeowner can now be achieved sooner than expected. If you meet the lender's eligibility requirements and have the required documents ready, you can apply for a Home Loan in no time and purchase your dream home.
But, how much time does it take for a loan provider to process a Home Loan application?
Here are a few things you should know about the Home Loan approval process.
While the approval process can vary between lenders, here’s a quick overview of the standard flow:
- Submit the duly filled Home Loan application form
- Submit the required documents
- Pay the home loan processing fee
- Discuss the terms and conditions of the loan
- Get your documents verified
- Secure the Loan Approval Letter
- Complete the legal check, and property verification
- Sign the Loan Agreement
- Home Loan is disbursed.
What is the average Home Loan processing duration?
The loan processing time can significantly vary between lenders. Even if two borrowers have approached the same lender, the processing time can vary between the borrowers. However, if everything is in order, you can expect a reputed Home Loan provider to process your loan application within 1-2 weeks. But it can take significantly longer in some cases.
You can visit the official website of the lender you are considering for your housing loan, to know more about their eligibility requirements, documentation process, and average processing time.
What is the most common reason for a delayed loan approval?
A delay in the loan disbursal or approval process, often owes itself to the document verification process. To get the Home Loan approved, a borrower must submit a range of documents related to their income, identity, and the property they want to purchase. Non-availability of the required documents or any error in the said documents, could delay a loan approval.
To avoid such delays, most borrowers opt for pre-approved Home Loans right when they are in the middle of house-hunting.
What is a Home Loan pre-approval?
If you would like to get your loan approved faster, you can consider a Home Loan pre-approval. It allows you to get an instant digital sanction of a housing loan, based on your eligibility. Top banks in the country offer this facility to their customers.
As pre-approval also provides an estimate of the loan amount you are eligible for, it makes house hunting easier. The Home Loan applications of pre-approved borrowers are processed faster as the lender has already completed the initial verification. But, note that pre-approval does not guarantee the final loan approval, or even the loan amount.
Understand the Home Loan process, for faster approval
As a housing loan is worth lakhs of rupees, the lender verifies every borrower based on several factors, to ensure that the loan is only offered to individuals with a minimal default risk. To accelerate a Home Loan sanction procedure, it is essential to clearly understand the entire Home Loan process, and keep all the required documents handy.
You can easily access all the details regarding the loan approval, on the lender’s website. Get in touch with your chosen lender to know more and avoid any mistake that could possibly lead to a delay in your loan processing-time.
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