The basic procedure for taking a loan for a home starts with you filling the application form which is the most basic document that starts your home loan process wherein you provide your details like your name, address, occupation and income. Additional documents required for your home loan may include details about the property you wish to purchase, estimated cost, and the down payment you can pay. These documents need to be verified before your loan application form can further. Home loans being a long-term borrowing instrument, their tenure can range from anywhere between 5 years to 30 years. Banks look into your credit history, essentially they assess your credit score before they grant you the loan. They assess your income in comparison to the cost of the house and determine if you will be able to pay off the house.
Pre-qualified is usually the first step- it tells how large of a loan you can qualify for, and pre-approved is the second step where they conditionally grant you the loan for the house.
The extra costs in applying for a home loan may include application charges, administrative charges, legal fees, franking fees, notary fees, indemnity costs, CERSAI charges, and documentation fees.