Loans applied for the home construction or purchasing one involve a lump sum. Apart from checking your credentials, lenders will also need to evaluate the property you wish to purchase and verify the requisite documentation. Therefore, it takes around two to four weeks to get sanctioned. Most housing loan sanction delays are caused due to missing documents, unclear applications, or several other reasons. Knowing the reasons for delays before applying for the housing loan will help you speed up the process.

How to Get Instant Approval on Home Loan

Save Enough to Pay Higher Down Payment

You will have to pay 10%-20% of the property value (or more, depending on your eligibility) despite availing of a home loan. Saving a little more and paying a higher down payment will lead to lesser money to be borrowed from the lender. Borrowing a lower sum helps lower interest rates and assure the financial institution that you pose a lower risk to their finances. 

Check and Maintain Your Credit Score

The credit score is a critical factor to look for while applying for a home loan. High credit scores also help you obtain the lowest home loan interest rate. It will also encourage your lender to overlook a few other shortcomings in your profile. A credit score reflects your loan repayments and spending habits. Hence, knowing the scores in advance and improving them beforehand will quickly help your application drift through the approvals. 

Clear off Pending Debts

Existing debts are a red flag to your lender as he will be doubtful regarding your repayment capacity. 

Clearing all your small debts as possible to focus on your home loan will help improve your credit scores and speedy approval of the application. 

Use a Co-applicant

You can add your parent, sibling or spouse as a co-applicant. Adding a co-applicant with a good credit score and stable income not only increases your eligibility but also speeds up the application process. This lets the lender know you are capable of repaying the loan on time even if your single income does not meet the home loan eligibility filled in the application form.

Check Your Eligibility

Eligibility is an indispensable factor that is critical for your home loan approval. Check your eligibility beforehand with the shortlisted lender by matching the eligibility criteria and the maximum amount you qualify for using the home loan eligibility calculator. Checking the eligibility beforehand will help you save a lot of time waiting for approval at the wrong lender. Knowing these two facts ahead will also help you take steps to improve your eligibility by adding co-applicant(s) or arranging extra funds for the remaining amount.

Do not apply for home loans with a lender where you do not meet the eligibility criteria. This will only lead to rejection of the home loan application, which will drastically bring down your credit scores. 

Fill in your Application Form Carefully 

It is vital to avoid making mistakes while filling in the application for a home loan. When your lender finds discrepancies in the application form, he will put it on hold. Filling the application form carefully and checking the bank details and personal details provided thoroughly before sending the application will speed up the verification process without any hassle.

Do not send out multiple home loan applications to different lenders will also lower your credit scores. Hence it is imperative to finalise one lender where you are eligible and then proceed with the application.

Prepare Your Documents Carefully

Home loan documents are essential for your home loan sanction. Check for the documents required for home loans and furnish them in advance and ensure you have all proofs requested by the lender. The lender will put your application on hold if the documentation is not clear. Here’s a quick checklist to collate all necessary documents together:

The basic list of documents required for the home loan are:

• Completed online application form
• Passport-sized photograph
• Proof Of Identity like Aadhaar Card, Pan Card, or Government ID for government employees
• Proof of Residence – Aadhaar Card, Ration Card, utility Bills, Water Tax bills, Voter ID, Driving license. 

For salaried individuals – Proof of Income:

• Last 3 months’ salary slip
• Last 6 months’ bank statements showing salary credit
• The latest copy of Form 16

For self-employed individuals – Proof of Income:

• Business profile
• Last 6 months’ bank statement
• Last 2 years’ Income Tax returns & financials, including balance sheet, Profit and Loss accounts

Having these documents ready and by following the above tips, apply for a home loan now, and you may get your approval sooner than usual.

Apart from the above, check for financial institutions who swiftly process your home loan within 72* hours if you meet your eligibility criteria and successfully verify loan documents. Contact 18001021003 for more queries.