The Importance of Financing Your Home Purchase

Financing before closing? Super important. It really keeps everything moving. Getting pre-approved or having a solid loan lined up means fewer delays when you go to register. Plus, it’s great for figuring out what you can afford, don’t forget stamp duty, registration fees, and pre-EMI costs.

Key Actions to Finish Loan Formalities

• Lock in your pre-approval to secure eligibility.
• Sort out your KYC and documents early.
• Use the Home Credit personal loan app to track your application status and check e-statements.
• Make sure to confirm your disbursement timelines with the lender’s customer care.

Quick Reference Table: Timeline and Must-Do Documents

Step	What to Submit	Typical Time
Pre-approval	ID, address, income proof	1–3 days
Formal Application	Signed form, property papers	3–7 days
Valuation & Legal	Property valuation report	5–10 days
Disbursement	NOC from builder/seller	2–5 days

ASBL Spectra - Ready To Move In 3BHKs only in Financial District

Unveil the 50-50 payment plan

1980 sq. ft at just ₹2.10 Cr (ALL INCLUSIVE + GST)

View Details

View More  ➝

Practical Tips Before Closing

Always keep scanned copies of important documents handy. A week before your closing date, double-check the final payout with both your lender and the seller. Don’t forget to explore our guides on required home loan documents and why it helps to get pre-approval early. Documents Pre-approval.

Step 1: Comparing Home Loans

Why Compare First?

Before jumping in, list out rates, tenures, processing fees, prepayment charges, and insurance. Also, see if a short-term personal loan might bridge your down payment or cover EMIs until the home loan kicks in. That app you’ve got for Home Credit? It’s a lifesaver for quick quotes, so use it and compare offers from different banks side by side.

Quick Comparison Table: Sample Market Snapshot

Product	Interest Rate (p.a.)	Max Tenure	Typical Processing Fee
Home Loan (Bank A)	7.25%	20 years	0.25%–0.5%
Home Loan (Bank B)	7.50%	15 years	0.4%
Home Credit Personal Loan	13%–18%	1–5 years	2%–4%

Note: Rates vary by profile. For details on Home Credit products, see the overview on source.

How to Compare Effectively

Begin by converting rates into EMI and total interest using an EMI calculator. Slowly add one-time fees and insurance to get the real picture. Next? Check for prepayment and foreclosure charges, then run a few scenarios: a longer tenure might lower your EMI, but it could inflate your total interest.

Step 2: The Sanction Letter – What You Need to Know

What’s the Sanction Letter?

A sanction letter is your lender’s way of giving you the green light. It spells out the amount approved, interest rate, tenure, and any special conditions you need to keep in mind. Take your time reading through those conditions carefully, and don’t forget to note how long it’s valid.

Documents You Must Submit Now

• Identity and address proof
• Latest salary slips or ITR
• Bank statements (last 6 months)
• Property papers and title search report
• No objection certificate, if applicable

Quick Factual Summary

Item	Typical Requirement	Notes
Sanction Validity	30–90 days	Ask the lender for specifics
Processing Time After Docs	3–15 days	Depends on valuation and legal checks
Common Fee	0.25%–1% of loan	Varies, check the sanction letter

Confirm Valuation and Legal Clearances

First, your bank will initiate a valuation and legal due diligence. If they require any missing property documents, be ready to provide them. And if processing or valuation fees come up, don’t shy away from paying. Make sure to have the encumbrance certificate and approved plan clear too. For a full checklist on documents, see our guide on essential home loan documents. Essential Home Loan Documents and also, for general document lists, refer to the lender overview. source.

Final Steps Before Closing

Sign the loan agreement and the power of attorney if that’s required. Set up your disbursement and registration dates, and keep copies of the sanction letter and everything else you’ve submitted.

Step 3: Essential Verifications – Technical and Legal Checks

Before Closing

It’s verification time! Check over title, permissions, and valuations. Get your lender paperwork and loan sanction conditions confirmed. After that, run the legal checks: is the title clear? Do you have the encumbrance certificate, approved plan, and proof that there’s no litigation?

What to Ask

When you call, make sure to ask about sanction conditions and required no objection certificates (NOCs). Don’t forget to confirm pre-payment, foreclosure, and the disbursal process, this could save you from panicking at the last minute.

Quick Verification Table

Check	Who	Docs or Output	Time
Title Search	Advocate / Title Firm	Encumbrance Certificate, Sale Deed	3–7 days
Technical Audit	Independent Engineer / Valuer	Structural, MEP Note, Valuation Report	2–5 days
RERA / Approvals	Buyer / Advocate	RERA Registration, OC/CC, Plan Approvals	1–3 days

Legal Advisor and Appraisal Roles

Hire a lawyer to check the title chain, and handle power of attorney issues, any relinquishments, and check for pending dues. Also, look into getting an independent valuation to confirm the market value and check lender Loan-To-Value ratio (LTV). For documentation that supports your home loan, refer to a standard checklist before you hand over any funds.

Practical Tips

• Double-check builder agreements and timelines for possession.
• Ensure you have original documents and certified copies at hand.
• Sign only after everything – title, approvals, and lender conditions are completely clear.

Step 4: Margin Money Payment and Key Documentation

Need Help?

Let’s break down margin money first. That’s your portion of the down payment not covered by the lender. It reduces the lender’s risk and finalizes your disbursement. Make sure you calculate exactly how much you need from the sale agreement and lender-sanction letter. Also, check if builder subvention or part-payment requirements affect how much margin money you need.

Documents Checklist and Who Submits Them

Gather up original documents and keep scans ready. Below’s a table that lays out typical documents, their importance, who usually submits them, and how long it takes to arrange them.

Document	Why Needed	Who Submits	Time to Arrange
Sale Agreement / Allotment Letter	Proves property and cost	Buyer	1–3 Days
ID & Address Proof	KYC and Verification	Buyer	Same Day
Bank Statements / Salary Slips	Income Verification	Buyer	2–7 Days
NOC / Occupation Certificate	Legal Clearances	Builder / Seller	7–30 Days

Step by Step Submission

You’ll want to pay the margin money by cheque or online following the builder and lender instructions. After that, submit your scanned documents via the lender portal or at the branch. If you’re using the Home Credit personal loan app, you can upload certified copies straight through the app based on prompts. And make sure you update the lender if anything changes with payee details.

When to Call the Home Credit Personal Loan Customer Care Number

If delays are lingering, call customer care or raise a complaint online. Need contact numbers or the grievance steps? Paisabazaar has all the info you need. source. Also, make sure you check out our detailed document checklist to dodge any last-minute hiccups. Essential Home Loan Documents.

Step 5: Navigating the Disbursement Process and EMI Setup

What to Expect After Approval

So, your personal loan application is approved? Great! The lender will confirm terms, check out final documents, and arrange for disbursement. First up is the formal sanction letter. It’ll go over your loan amount, rate, charges, and EMI schedule. They might need more documents or an NOC from the seller. Remember, with property loans, disbursement usually goes directly to the builder or seller.

Timeline and Conditions

• Typical disbursement timeframe? Expect about 3 to 15 working days after final verification.
• Conditions include clear title, original KYC, completed agreement, and any insurance or lien documentation.

For extra details on documents, have a look at our checklist on essential home loan documents. Essential Home Loan Documents.

Disbursement & EMI Setup Table

Stage	Typical Timeline	What You Must Do
Sanction Letter	Day 0	Check amount, rate, fees
Document Verification	3–7 Days	Submit originals, sign forms
Disbursement	3–15 Days	Ensure seller account details
EMI Start	30–45 Days after Disbursement	Choose debit date or ECS

Setting an EMI Date and First Payment

You can usually select your EMI debit date using the Home Credit personal loan app or by reaching out to customer service. Prefer handling it manually? Just ask for an ECS mandate. Pre-EMI interest applies if disbursed in stages.

Tips

• Confirm how your EMI breaks down and what the total cost comes to.
• Keep all receipts from disbursement and registration.
• Document any calls or emails for disputes, and escalate if needed using the official contacts mentioned earlier.

FAQ

What is the importance of getting pre-approved for a home loan?

Getting pre-approved helps determine your budget, ensuring you only look at properties within your financial reach and reducing the chances of delays during the loan approval process.

How long does it take to process a sanction letter?

The processing time can vary, typically taking between 3 to 15 days after all necessary documents are submitted and verified.

What documents are required for a margin money payment?

You will generally need your sale agreement, identity proof, bank statements, and any other documentation specified by your lender.

How do I confirm my EMI schedule?

Your EMI schedule can typically be confirmed through your lender’s app or by directly contacting their customer care support.