The Benefits of Using Pre-Approved Loans
When one applies for a loan, it is crucial to understand that the bank generally finances 80% of the property value which eventually depends on the location of the property, builder reputation, documentation etc. For the same, financial institutions play an important role in building a dream home principally when our savings fall short. One can avail a personal loan in Delhi easily at low interest rates.
Prior to beginning with the benefits of pre-approved loans over a regular loan, it is crucial to know what a pre-approved loan is. Also, how is the complete process of home loan pre-approval done?
What is a pre-approved home loan?
The name itself recommended that a pre-approved home loan is a sanction of loan that is done prior to finalizing the property deal. Such a process is similar to availing a regular loan sanctioned, only that they do not require to submit any of the documents related to property.
Lenders ask for a few mandatory documents for validation which requires income tax return, pan card, address proof, bank account statement along with salary slips. Such a process also requires a processing fee which is well adjusted post the final loan is disbursed.
The lender ensures to fetch the CIBIL report to verify the creditworthiness. If the applicant has a pre-existing loan, the post-existing loan amount would be deducted from the approval limit. Personal loans in Delhi are easily dispersed quickly and effectively.
Other than this, once the validation process is done the financial institution issues a letter of pre-sanction home loan to the applicant. The pre-approved home loan comes with a 6 month tenure within which the applicant must finalize the property deal. In such a case the applicant might fail to get a property within the time frame, he/ she must re-apply for the pre-approved loan as the processing fee is neither returned nor is it adjusted later in the home application.
After this, one is aware of the pre-approved loan as well as the process, letting us gain more knowledge of the benefits that it offers.
Benefits of having a pre-approved home loan
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Final loan disbursal becomes fast and easy
As a majority of loan verification has been done at the early stage, the process of loan disbursal becomes quicker and efficient. Perhaps the only pending documents for validation are taken to be the property documents. Once the documents are verified, the sanctioned loan amount is easily disbursed. This ensures to assist the buyers when the property holds a shorter window of the transaction along with a tenure for the process.
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House hunt becomes effective and highly focused
Real estate hosts an array of numerous houses for instance apartments, villas and independent houses. If the applicant already has a predetermined budget, then the hunt for the house eventually becomes comparatively easier. For example, a person with a pre-approved loan of 60 lakhs will look for a house within a budget of 55- 65 lakhs.
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Negotiation process becomes quicker and more accessible
Post having a pre-approved loan, they can negotiate with builders and would be required to take it seriously as compared to any other prospective buyer. Personal loan in Delhi are highly effective and quick that can necessarily help to provide ease financially.
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Well planned Finances
Pre-approved loans assists an individual to know his/ her financial standing as well as to give them an insight of their worth. Adding further to this, this assists a person to plan such savings and make a down payment accordingly.
To conclude-
To avail pre-approved for a home loan does not possibly guarantee that the loan will be finalized. Factors included as property as well as related documents and analysis guidelines of the bank also play a critical part. To add further, the loan application should be done within the sanction period as mentioned. Beside these factors, a pre-approved loan always offers a head start which regular loans do not. Pre-approval of home loan also ensures that the loan disbursement is convenient and effective for the applicant.
