How to Apply for a Home Loan Online: The Process
Given the impact of this financial decision, mortgage applicants should be careful about which lender they choose to borrow from and the mortgage application process itself. Although the application process is not very complex, it must be ensured that it follows it to the end and that it meets the prescribed eligibility criteria, which are specific to each credit institution.
However, thanks to the digital transformation of the mortgage industry, all the information you need about your home loan is available online, allowing you to research and perform your due diligence before applying. And not only that, industry leaders such as Bajaj Housing Finance Limited even offer online apps – taking the entire home loan borrowing journey online, with very little physical interaction at a time when the distancing social is the need of the hour. People who apply through the lender’s online home loan application form can also get a digital sanction letter. The entire form takes around 10 minutes to complete and only asks for basic details.
In this article, we explain everything you need to know before applying for a home loan online.
Home loan eligibility criteria
The first thing any mortgage candidate should take a close look at is their mortgage eligibility. Each lender has a list of applications that they expect applicants to respond to, after which they can approve their loan application. The parameters include age, credit rating, repayment capacity, income, and obligation, among others.
Applicants are advised to check their eligibility beforehand to see how they stack up against the lender’s criteria and only then apply. This can help find the most suitable mortgage for their repayment capacity and increase their chances of being approved. Applicants should note that their credit rating is also hampered if their home loan application is rejected – so be sure of their chances of being approved before applying.
Mortgage interest rate
Another important point to consider when looking for the right home loan is the applicable interest rate. The interest rate is fundamental in determining the cost of your mortgage and how you can plan your finances. Lenders offer two types of interest rates on home loans to eligible applicants namely fixed and floating.
1. Fixed interest rate: If you opt for a fixed interest rate, you isolate your mortgage EMI from market fluctuations. As the name suggests, the interest rate stays the same throughout the term or until a reset date. However, the fixed interest rate is usually a bit higher than the floating interest rate.
2. Floating interest rate: As its name suggests, this interest rate is linked to an internal / external benchmark and is subject to change depending on the market. This rate is not only lower than the fixed interest rate, it also allows the borrower to benefit from favorable market conditions resulting in lower interest rates and smaller EMIs. Reputable lenders such as Bajaj Housing Finance offer home loans to salaried and professional applicants with floating interest rates starting at 6.70% * per annum, based on eligibility.
Calculate the EMI of the mortgage
Every aspiring home loan must take stock of their repayment capacity and calculate their possible home loan EMI to see if it is an amount that they can repay comfortably over a long period of time. It is important to have an interim repayment schedule in place as it helps you plan your long-term financial goals, as well as keep track of your EMI exits, reducing the risk of default.
The first step in planning your repayment is determining the loan amount you need from your lender. An applicant can generally achieve significant value if they have a strong financial, income and credit profile and can meet the eligibility criteria as required. After deciding on your loan amount, you will need to set the loan term over which you will repay the loan. There are several factors to consider, such as your age at time of borrowing, your EMI-to-income ratio, and your financial profile.
Using a home loan calculator makes it easier for you to predict your potential home loan IMEs. Bajaj Housing Finance Mortgage Calculator is a free, easy-to-use digital tool that allows borrowers to adjust their loan amount, loan term, and interest rate as they see fit, to get a realistic picture. what their IMEs might change to. be – which shows them if they can afford the mortgage they want.
How to apply for a home loan online
The online mortgage application path hosted by market leaders such as Bajaj Housing Finance Limited is easy to follow and efficient – saving you time and effort while you are applying for a mortgage. Here is how to apply for a mortgage online:
– Go to the website of your lending institution and access their mortgage application online
– Select the loan product that interests you
– Provide the basic details requested on the form – your name, income details, ID, proof of address and co-applicant details (if required)
– Adjust the loan amount, duration and preferred interest rate according to your needs
– Check out pre-approved offers and special benefits tailored for you
– Download the other documents and necessary documents before finalizing the request
Many lenders also provide on-call assistance, with a customer service consultant who can help you through the process. Toll-free telephone numbers are also available to make the process easier for the borrower.
In the post-pandemic world, applying for a home loan online has been of tremendous benefit to borrowers and lenders. This move towards digitalization also gives the borrower full control over their application and makes their borrowing experience hassle-free.
If you are looking for a home loan, consider opting for Bajaj Housing Finance Limited online home loan which is designed for maximum affordability and convenience. One can complete the form in just 3 steps and get a digital sanction letter in as little as 10 minutes.
Disclaimer: This content is distributed by Bajaj Finserv. No HT journalist is involved in the creation of this content.
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