Get the Insights on Pre-Qualified Home Loan, Advantages & Process

Last Updated : April 5, 2016, 12:03 p.m.

When it comes to home, all of us want to buy a property, which is within our budget and fulfills our requirements. You spend a lot of time in searching a property and finalising the most suitable. But when you talk about financing a home or borrowing a loan to buy the home, it is not that simple. There are many points, which might prove fatal in decision making. Even, the process of application and approval is so tedious and cumbersome. What if you get a pre-approved loan or a pre-qualified loan in your kitty? It sounds nice to get a pre-qualified loan. There are many advantages of having a pre-qualified home loan offer from a leading bank. Once you receive a letter of pre-qualified home loan that means you need not to run from bank-to-bank for application process. Moreover, it will help you to get faster loan without making much efforts and paper work. Almost all the banks give pre-qualified loan offers to their customers on the basis of their credit history and credit worthiness. There are various banks that offer pre-qualified home loan offers to its customers. Here are some advantages of pre-qualified home loan.

Advantages of pre-qualified Home Loan

Simple Online Application Procedure: To get a pre-qualified loan, you need not to rush a bank or your nearest branch. You can get a pre-qualified loan approved at the comfort of your home. You can submit the application online by visiting the website of the bank. You just need to follow the few simple steps to complete your application.

Fast Processing: Since there is not much paper work required by the bank for pre-qualified loan, the processing of the application is really fast. Online application reduces the time of processing.

24X7 Application Comfort: You want to wait in long ques and visit the banks again and again to fill your application or complete your application process. Choice is yours. But I guess you will love to avail the latter option, won’t you? The bank gives you the comfort of applying to various products online. You can go online and apply for the pre-qualified loan from anywhere, anytime with ease.

Almost Zero Paper Work: As all the process is online, so you need not to complete paper work by visiting the branch personally. Unless you don’t receive a call from the bank for further documentation or verification, you can submit the application online and get free from the paper work. At the time of application, you just need to submit soft copies of all your documents along with your application form. So, there is almost zero paper work involved in the application process of pre-qualified home loan.

Know Your Maximum Limit: After getting the pre-approved home loan letter from the bank you are pretty much sure about your maximum credit limit. You know well in advance how much loan a bank will lend you on the basis of your monthly income.

Better Negotiation: Once you know your credit limit and you have a pre-qualified letter with you from the bank, you can negotiate well with the property dealer or builder. It will help you in grabbing a better deal for your home. You can negotiate well as per your credit limit.

Less Disbursal Time: If you have a pre-qualified home loan letter of the bank, the loan will get disbursed quickly. Since the basic paper work and documentation have already been done by you at the time of pre-qualified application, so here you need to go through the minimal paper work to get your loan approved after identifying the property you want to buy.

Pre-qualified Home Loan Eligibility

Banks offer home loan to customers who successfully meet the eligibility criteria set by the lenders. The basic eligibility and documents required by the banks are more or less similar. The maximum and minimum amount offered by the bank to the customers may vary on the basis of their eligibility and the norms stipulated by the lender. The loan is approved on the basis of your application and your monthly income. While processing the application, bank consider a few details such as your monthly income, your gross income and net income. Besides, your monthly income, it will also consider your credit worthiness and employment status. If you are working with any leading company or MNC, your application might get approved easily. You should be between 21-60 years of age at the time of application.

Duration Required for Pre-qualified Loan

Once you fill all the details and submit your completed application online, bank will take three working days to approve and disburse a loan offer letter after verifying your details.

Documents Required for Pre-qualified Home Loan

• Duly filled application form
• Identity proof (PAN Card/Valid driving licence/Voter ID,etc.)
• Residential Proof (Electricity bill/Telephone bill)
• Last six month bank statements
• Last 3 months salary slip
• Processing fee cheque
• Form 16/Income tax return
• Proof of business existence (Self-employed non-professionals)
• Education Qualification certificate & proof of business existence (Self-employed/self-employed non-professionals)
• Last 3 years Income tax return with computation of income (Self-employed/self-employed non-professionals)
• Last 3 years CA report/Audit balance sheet & profit and loss account (Self-employed/self-employed non-professionals)