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Home Loan Application and Approval Process – What to Expect

Summary: Read on to understand the complete process of applying for a home loan.

Applying for a home loan is a big step towards fulfilling your dream of owning a house. However, the process of getting a home loan can feel overwhelming, especially if you are doing it for the first time. 

Here is a step-by-step guide on what you can expect during the housing loan application and approval process.

Before applying for a housing loan, it is important to research and compare the available options. You can compare different lenders, loan terms, interest rates, and house loan EMI options.

Doing this, helps you select the home loan option that suits all your requirements.

  • Eligibility Criteria

Once you select the home loan option, you must check if you meet the lender’s eligibility criteria. 

The eligibility criteria may vary based on the lender, but some common factors that are considered include age, income, employment history, credit score, and existing debts.

  • Documentation

Once you are eligible for a housing loan, you need to submit the required documents.

The documents required may vary from lender to lender. Common documents include identity proof, address proof, income proof, bank statements, property documents, and photographs.

  • Property Valuation

After the documentation process, the lender will conduct a property valuation to determine the property’s market value. This is done to ensure that the property is worth the amount you are borrowing. 

The valuation process may take some time, depending on the lender’s policies.

  • Loan Approval

Once the property valuation is complete, the lender will review your application and assess your creditworthiness. 

If your application is approved, the lender will issue a sanction letter that specifies the loan amount, interest rate, and other terms and conditions.

  • Loan Disbursement

After the loan approval, the lender will disburse the loan amount. Depending on the lender’s policies, the loan amount can be disbursed either in full or in instalments. 

The amount will be transferred to the seller’s bank account as per the agreed terms and conditions.

  • EMI Payment

After the loan disbursement, you must start paying the house loan EMI. The EMI is a fixed amount you must pay monthly towards the loan repayment. 

The loan amount, rate of interest, and loan term are used to determine the EMI amount.

  • Loan Servicing

After the loan disbursal, the lender will start servicing the loan. The lender will provide a loan statement showing the EMI payment, the outstanding loan amount, and other details. 

You must pay the house loan EMI on time if you want to avoid late payment charges or penalties.

Essential Documents Required for Home Loan Application

When applying for a home loan, there are certain essential documents that you must provide to the lender. These documents help the lender evaluate your creditworthiness and determine your eligibility for the loan. 

Here are some of the essential documents required for a housing loan application:

  • Identity Proof
  • Address Proof
  • Income Proof
  • Employment Proof
  • Property Documents
  • Bank Statements

The specific documents required may vary from lender to lender. It is important to check with the lender about the documents required. It is also essential to ensure that all the documents are up-to-date and accurate. 

Any errors or discrepancies in the documents can delay the loan approval process or even result in loan rejection.


Applying for a housing loan can be a complex process, but by following the steps mentioned above, your process can become easier.

Make sure you submit all the required documents and meet the eligibility criteria. Once the loan is approved, ensure you pay the house loan EMI on time and keep track of the loan servicing.

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