How to Get Pre-Approved for a Home Loan in Kerala

A pre-approved home loan is a facility extended by the lender to a borrower based on their eligibility, credit score, financial capability, and relationship with the lender. This facility allows the borrower to get loan approvals faster without going through lengthy procedures at the last moment. Pre-approval for a home loan in Kerala can hasten the loan disbursal for booking the property of choice.

Let us refer to our home loan guide and understand the steps involved:

1. Evaluate Financial Status

The borrower should estimate their financial stability and loan repayment ability by evaluating their current financial status. Deducting monthly expenses, existing loan repayments and other financial obligations from income will give an estimate of the available funds that can be used to finance the home loan repayment.

2. Choosing The Best Lender

The home loan process can be challenging as the goal is to find a lender with a good reputation, an attractive interest rate, and a favorable repayment plan. Research all the options available thoroughly to find a lender that meets expectations. The online reviews given by previous borrowers are helpful.

3. Documents

The important documents required by the lenders are:

1. Proof of Income – Pay slips and income tax returns for specific periods
2. Proof of Identity
3. Bank Statements
4. Credit History or Credit Score
5. Employment Verification.

4. Application

The duly filled pre-approval application form should be submitted. The necessary documents like proof of identity, address, employment information, income details, and property details are submitted. Other documents needed as proof of the information provided are also submitted.

5. Evaluation

The lender will evaluate the application by checking and validating the documents provided. If the application meets the criteria set by the lender, the application will be approved. Depending on the application a credit limit is approved and extended to the borrower. The borrower should therefore have a few approvals to choose the lender that meets their requirements.

6. Pre-approval Letter

If the application is approved, the lender normally issues a letter of pre-approval of loan. The letter has information about credit limit, tenure, interest rate, and other terms and conditions. This helps in qualifying pre-approved home loan for the borrower. Pre-approval home loan does not guarantee the disbursement of the home loan. The lender may reject the loan application if the property does not qualify for the loan.

The pre-approval of the home loan aids the process of purchasing property. Depending on the approved amount, buyer can arrange the required balance. It can also be a basis for negotiation with the developer in Kerala for a good price.